Consumer Advocate in Maryland Pushes for Lower Prices in PJM’s 2024 Capacity Auction

The Maryland Office of People’s Counsel has taken action to address concerns about the potential impact of PJM’s 2025/26 Base Residual Auction on consumers. The Office filed a complaint asserting that the auction’s rules could result in consumers having to pay for capacity provided by generators under Reliability Must Run (RMR) agreements twice. This move comes in response to the significant increase in PJM capacity prices seen in the recent auction, with prices soaring almost tenfold for the 2025/26 period, leading two regions to hit their zonal caps.

The complaint filed by the Maryland Office of People’s Counsel highlights what it views as flaws in the auction process that could ultimately lead to a 24% price hike for certain ratepayers. The concern is centered on the possibility of consumers being charged for capacity from both resources procured through the auction process and those operating under RMR agreements. This potential double payment scenario raises significant issues of fairness and cost-effectiveness for consumers in the region.

The elevated prices seen in the recent PJM auction have raised alarm bells for consumer advocates like the Maryland Office of People’s Counsel. The drastic increase in capacity prices has put pressure on ratepayers, who may ultimately bear the burden of these higher costs. The potential for a 24% price hike for some consumers is a cause for concern, prompting consumer advocates to call for closer scrutiny and potential revisions to the auction process to ensure fairness and cost-effectiveness for all consumers.

As the Maryland Office of People’s Counsel seeks to address these concerns, the focus remains on advocating for consumers and pushing for a more transparent and equitable auction process. By filing a complaint and highlighting the flaws in the current system, consumer advocates aim to protect ratepayers from bearing the brunt of increased capacity costs unfairly. The ultimate goal is to ensure that consumers are not subject to unnecessary financial strain and that the auction process operates in a manner that is fair and just for all parties involved.

Consumer advocates in Maryland are committed to fighting for the rights of ratepayers and pushing back against policies that could lead to higher costs for consumers. The efforts of the Maryland Office of People’s Counsel to challenge the rules of PJM’s recent auction underscore the importance of vigilant oversight and advocacy on behalf of consumers. By taking a stand against what they view as flaws in the auction process, consumer advocates are working to protect the interests of ratepayers and ensure that consumers are not unduly burdened by escalating capacity prices.