{"version":"1.0","provider_name":"Citizens Utility Board","provider_url":"https:\/\/www.citizensutilityboard.org","title":"PJM broke the capacity auction--but here's how they can fix it | Citizens Utility Board","type":"rich","width":600,"height":338,"html":"<blockquote class=\"wp-embedded-content\" data-secret=\"LNd0Xj0MHk\"><a href=\"https:\/\/www.citizensutilityboard.org\/blog\/2024\/11\/06\/pjm-broke-the-capacity-auction-but-heres-how-they-can-fix-it\/\">PJM broke the capacity auction&#8211;but here&#8217;s how they can fix it<\/a><\/blockquote><iframe sandbox=\"allow-scripts\" security=\"restricted\" src=\"https:\/\/www.citizensutilityboard.org\/blog\/2024\/11\/06\/pjm-broke-the-capacity-auction-but-heres-how-they-can-fix-it\/embed\/#?secret=LNd0Xj0MHk\" width=\"600\" height=\"338\" title=\"&#8220;PJM broke the capacity auction&#8211;but here&#8217;s how they can fix it&#8221; &#8212; Citizens Utility Board\" data-secret=\"LNd0Xj0MHk\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" class=\"wp-embedded-content\"><\/iframe><script type=\"text\/javascript\">\n\/* <![CDATA[ *\/\n\/*! This file is auto-generated *\/\n!function(d,l){\"use strict\";l.querySelector&&d.addEventListener&&\"undefined\"!=typeof URL&&(d.wp=d.wp||{},d.wp.receiveEmbedMessage||(d.wp.receiveEmbedMessage=function(e){var t=e.data;if((t||t.secret||t.message||t.value)&&!\/[^a-zA-Z0-9]\/.test(t.secret)){for(var s,r,n,a=l.querySelectorAll('iframe[data-secret=\"'+t.secret+'\"]'),o=l.querySelectorAll('blockquote[data-secret=\"'+t.secret+'\"]'),c=new RegExp(\"^https?:$\",\"i\"),i=0;i<o.length;i++)o[i].style.display=\"none\";for(i=0;i<a.length;i++)s=a[i],e.source===s.contentWindow&&(s.removeAttribute(\"style\"),\"height\"===t.message?(1e3<(r=parseInt(t.value,10))?r=1e3:~~r<200&&(r=200),s.height=r):\"link\"===t.message&&(r=new URL(s.getAttribute(\"src\")),n=new URL(t.value),c.test(n.protocol))&&n.host===r.host&&l.activeElement===s&&(d.top.location.href=t.value))}},d.addEventListener(\"message\",d.wp.receiveEmbedMessage,!1),l.addEventListener(\"DOMContentLoaded\",function(){for(var e,t,s=l.querySelectorAll(\"iframe.wp-embedded-content\"),r=0;r<s.length;r++)(t=(e=s[r]).getAttribute(\"data-secret\"))||(t=Math.random().toString(36).substring(2,12),e.src+=\"#?secret=\"+t,e.setAttribute(\"data-secret\",t)),e.contentWindow.postMessage({message:\"ready\",secret:t},\"*\")},!1)))}(window,document);\n\/* ]]> *\/\n<\/script>\n","description":"By Clara Summers, Campaign Manager Consumers for a Better Grid (a project of CUB) The electricity price for Illinois\u2019 largest power utility, Commonwealth Edison, will go up significantly next summer because of a recent auction to secure reserve power. Grid operator PJM announced that its recent &#8220;capacity&#8221; auction sent prices skyrocketing from $28.92 per Megawatt-day to a record $269.92 per MW-day.\u00a0 Such capacity costs make up a portion of the price of electricity, so this is expected to cause ComEd bills to increase starting in June of 2025.\u00a0 Why are the prices so high? The Market Monitor for PJM said \u201cthe [] prices do not solely reflect supply and demand fundamentals but also reflect, in significant part, PJM decisions about the definition of supply and demand[.]\u201d\u00a0 But if supply and demand weren\u2019t to blame, what was? Well, it\u2019s complicated: There are multiple root causes\u2013and\u00a0 each demonstrates a different failure of PJM leadership.\u00a0 But just as the causes are in PJM\u2019s hands, so are the solutions\u2026 Root Cause 1: A Perfect Storm of Interconnection and Auction Delays PJM\u2019s capacity market is supposed to operate under a \u201cthree-year forward\u201d mechanism. That means PJM holds auctions to buy reserve electricity three years in advance of when it\u2019s needed. So when lower supply sparks higher auction prices, generators will then have ample time (three years) to respond to that signal and build new power plants.\u00a0 Unfortunately, 2018 was the last time PJM held a three-year forward auction. Today, auctions happen on a drastically compressed schedule.\u00a0 For example, PJM\u2019s July auction secured reserve power for just 11 months into the future, June 2025\u2013not enough time for new generating resources to build and connect to the grid.\u00a0 That would be true even if PJM\u00a0 were quick to get resources online\u2013but it\u2019s not, and that\u2019s the other problem. PJM is infamous for having one of the nation\u2019s slowest interconnection queues. The \u201cqueue\u201d is the waitlist for new electric resources seeking review and approval by PJM so they can be connected to the grid.\u00a0 Unfortunately, there are more renewable resources waiting in line than all of the resources currently powering PJM\u2019s vast 13-state region.\u00a0 As it processes this massive backlog, PJM isn\u2019t renewing any new interconnection applications until 2026, at the earliest. Some projects have sat in the queue for so long (5 or more years) that they have lost financing or site permissions, and so they drop out of the process before PJM even reviews them.\u00a0 In this frustrating situation\u2013with a key part of the clean energy transition on hold\u2013everyday electric customers will pay for higher capacity prices on their electric bills without\u00a0 getting any benefit for those payments. High prices + failure to get resources online quickly = bad news for ratepayers. What does PJM need to do? Get back on schedule and bring more generation online. First, PJM should fully comply with FERC Order 2023, which laid out new standards for interconnection processing. PJM has been foot-dragging on compliance, asking for exceptions to a number of these standards, including realistic treatment of battery storage, a technology that could be a huge help in easing these [&hellip;]","thumbnail_url":"https:\/\/www.citizensutilityboard.org\/wp-content\/uploads\/2020\/09\/500kV_3-Phase_Transmission_Lines-300x169.png"}