New Jersey BPU Demands PJM Market Reforms After 20% Power Bill Hike

3 articles · Updated · wrnjradio.com · Aug 14

A New Jersey BPU study said PJM’s capacity market no longer delivers reliable power at the lowest cost, prompting the agency to press for rule changes through PJM and the Federal Energy Regulatory Commission.
About 20% higher electricity bills last year drove the push, with the BPU saying PJM capacity charges were a major factor and already make up roughly 15% to 20% of a typical customer bill.
The report urges large new users such as data centers to add generation or accept lower-priority service, and backs replacing PJM’s single annual auction with seasonal and more prompt auctions using fresher demand forecasts.
Longer-term power contracts and a bigger state role in PJM governance are also central recommendations, aimed at reducing price spikes, attracting new generation investment and giving states more say over reliability and affordability.
The Legislature ordered the review in August 2025, and the BPU said it will also pursue related changes on transmission planning, data-center rates, virtual power plants and local transmission oversight over the next year.