Lawmakers Grill Utilities After PJM Capacity Auction, Seek Short-term Bill Relief and Faster Interconnections

Legislators convened a joint Senate and Assembly hearing in Trenton to question utility executives, union leaders and energy industry advocates about this summer’s projected electric bill increases tied to higher PJM capacity market prices and the slow pace of interconnection for new generation.

The hearing focused on the results of the recent PJM capacity auction, which speakers said combined with retirements and rising demand to push wholesale capacity prices and the supply portion of customer bills sharply higher. "This auction is run by PJM, and they are designed to maintain reliability at the lowest possible cost," said Rick Thigpen, senior vice president for Corporate Citizenship at Public Service Enterprise Group (PSE&G). He and other utility executives stressed they do not set PJM auction prices and urged cooperation on policy solutions.

Why it matters: Committee members warned that higher summer bills could cause immediate financial strain for low‑ and middle‑income households, and they pressed for short‑term actions the state and utilities could take now (billing smoothing, expanded outreach to assistance programs) while pursuing longer‑term fixes (new in‑state generation, faster queue processing, transmission upgrades).

What utilities said: Phil Vavala, regional president of Atlantic City Electric, and Theresa Reed, vice president of state finance and regulatory affairs for Jersey Central Power & Light (JCP&L), outlined the…