As PJM Interconnection engages in its 2026–2027 Capacity Market Auction, U.S. Congressman Josh Gottheimer (NJ-5) led a bipartisan letter with Rep. Lloyd Smucker (PA-11) to the regional power grid operator that serves New Jersey and 12 other states, demanding answers on how PJM plans to avoid another hike in electricity costs.
The auction will determine utility rates across the region for the following year.
In the letter, Gottheimer and nine congress members raise concerns over last year’s auction, where PJM overpaid for energy supply while refusing to bring new supply on the grid — a combination that contributed to a 40% increase in electricity bills for New Jerseyans.
In response to that, a PSE&G spokesperson said that prices for electricity customers in the state had actually gone up around 20% — with PSE&G customers paying close to 17% more on average.
Gottheimer is calling on PJM to take accountability and increase transparency around this year’s auction.
“We echo the concerns of our constituents that PJM shares responsibility in the increase of electric rates throughout the region. Last year’s auction results — where capacity clearing prices rose from $29 to $270 per megawatt-day — raises heightened concerns about the underlying factors contributing to that outcome, and the role PJM played in driving up costs for ratepayers,” wrote the Members of Congress in the letter to PJM Interconnection CEO Manu Asthana.
The Members continued, “Given those dynamics, and the role of PJM in shaping the current marketplace, we hope to ensure that a repeat of last year’s auction does not occur. To that end, our aim is to gain a better understanding of the steps PJM is taking to ensure that the millions of families and seniors that fall within PJM’s region do not face yet another price hike in their electricity bills.”
The letter, led by Reps. Gottheimer and Smucker, was also signed by: Reps. Brian Fitzpatrick (PA-1), Marcy Kaptur (OH-9), Sarah McBride (DE-AL), Kweisi Mfume (MD-7), Mike Quigley (IL-5), Janice Schakowsky (IL-9), Suhas Subramanyam (VA-10), and Eugene Vindman (VA-7).
According to PJM’s learning center, “PJM’s capacity market, called the Reliability Pricing Model, ensures long-term grid reliability by procuring the appropriate amount of power supply resources needed to meet predicted energy demand three years in the future.
“Under the ‘pay-for-performance’ model, resources must deliver on demand during system emergencies or owe a significant payment for non-performance. Think of this like an insurance policy – for a small additional cost (payment to resources which perform well), consumers will have greater protection from power interruptions and price spikes during weather extremes.
“By matching power supply with future demand, PJM’s capacity market creates long-term price signals to attract needed investments to ensure adequate power supplies.”
