PJM’s Independent Market Monitor published a study revealing that recent rule changes will cost customers $4.4 billion in the latest capacity auction. Dr. Joe Bowring, the Market Monitor, along with OMA energy consultant RunnerStone, explained at last week’s OMA Energy Conference that the rising power prices result not from a decrease in electric generation supply but from these administrative changes.

The study also identified market power issues, where power companies exploit a loophole to withhold renewable energy and battery storage capacity, artificially inflating prices for other thermal plants they own. This tactic allows generators to gain $4.1 billion at customers’ expense, raising significant concerns about transparency and quality that the OMA has previously highlighted to PJM’s board. 9/24/2024