PJM Interconnection Secures Electricity Capacity But Faces Shortfall Against Reliability Targets
PJM Interconnection reported that its 2028/2029 Base Residual Auction secured capacity but finished 6,831 MW short of the required reliability standard. The auction process, which protects consumers from extreme price swings, successfully placed a price cap, providing some stability for the grid operator. David Mills, PJM President and CEO, stated that these results show electricity demand continues to outpace supply growth. To address this shortfall and the associated risks to the system, PJM plans to seek federal approval for a special "Backstop Procurement" auction in September. The utility announced it procured 138,318 MW of unforced capacity generation across 13 states and the District of Columbia. Despite using a price collar approved by the Federal Energy Regulatory Commission, the total committed supply remains below the needed reserve margin. Furthermore, experts noted that elevated infrastructure costs, like pole and line replacements, continue to drive higher rates for customers. PJM remains focused on bringing new, reliable resources online to balance the system.