PJM warns of looming capacity shortfall; FERC approves temporary price limits for this year’s auctions

Jason Stanek, director at PJM Interconnection, told the Pennsylvania House Consumer Protection, Technology and Utilities Committee that the regional grid operator is facing a “mounting crisis” in resource adequacy as demand climbs and dependable generation retires. He said the issue is driving upward pressure on prices for Pennsylvania ratepayers and that steps taken by PJM and regulators aim to blunt near-term cost spikes.

Stanek told committee members that PJM operates the high‑voltage grid serving roughly “more than 65,000,000” people across parts of 13 states and the District of Columbia and that the operator values resources “differently based on their performance and their cost effectiveness.” He said a recent capacity auction produced an RTO clearing price of $270 per megawatt‑day in most zones after a prior clearing near $29 per megawatt‑day, a roughly ninefold increase that PJM attributes to shrinking supply and accelerating demand growth.

The rise in demand, Stanek said, is driven in large part by new large loads — “data centers coming online … almost on a weekly basis” — along with electrification of buildings and transportation. He warned that under an extreme summer…