A recent heat wave produced a brief $28,000-per-megawatt price in PJM’s frequency-regulation market, a specialized service used to balance the grid second by second.

The number is dramatic. Its significance is less clear.

Frequency regulation represents only a small share of total electricity costs, and PJM’s independent market monitor has questioned whether recent rule changes are inflating those payments. The spike may reveal more about flawed market design than an actual shortage of electricity.

Meanwhile, new generation remains trapped in PJM’s interconnection backlog, speculative demand forecasts continue to drive higher costs, and customers are being asked to pay more while receiving less transparency.

“PJM should not be allowed to point to every unusual price as proof of a power crisis, especially when its own market rules may be contributing to the result,” said Lindsey Short, managing director of energy and advocacy services for the Ohio Manufacturers’ Association. “Before customers are asked to pay billions more, PJM must prove the problem is real and prove it is not making the problem worse.” 7/13/2026