This week, PJM capacity prices increased nearly tenfold from $28.92/MW-day to $269.92/MW-day in the 2025/26 Base Residual Auction.

The OMA issued a statement following the announcement, citing the years of delay of PJM’s auction and rule changes as the culprit of rising prices that will be passed on to customers. The increase is estimated to cost consumers nearly $12 billion.

Utilities have been posturing for re-regulation. Recently, FirstEnergy CEO Brian Tierney described the company’s openness to owning generation. Known as re-regulation, The OMA opposes allowing utilities to operate power generation under a regulated monopoly business model.

The OMA is a longtime defender of competitive markets for power generation, believing they are far preferable to government picking winners and losers under a regulated model. This topic will be covered in depth at the OMA Energy Conference on Sep. 19. 7/30/2024