For Immediate Release
Media Contact: Jackie Greger, Jackie.Greger@sierraclub.org
NJ Groups Say “I Told You So” At Energy Auction Results
PJM energy auction results mean higher electricity bills for New Jerseyans
TRENTON, NJ – July 22 2025 – Earlier this month representatives from 17 leading environmental, consumer, and clean energy organizations issued a public call to Governor Phil Murphy for continued pressure to PJM Interconnection in the face of rising electricity costs across New Jersey or consumers would be left footing the bill.
PJM Interconnection announced results of its 2026/2027 Base Residual Auction (BRA), which secured 134, 311 MW of unforced capacity generation (CAP) and demand response to meet projected electricity needs for more than 67 million people across 13 states and the District of Columbia.
The price came in at the FERC-approved cap, $329.17/MW-day (UCAP), for the entire PJM footprint. This price compares with $269.92/MW-day for the 2025/2026 auction for the RTO, except for the BGE and Dominion zones, which cleared at $466.35/MW-day and $444.26/MW-day, respectively.
“PJM’s capacity auction is a slap in the face to New Jersey ratepayers who are already burdened by increases on their electric bill from this year alone. This isn’t poor planning, it’s a deliberate choice that undermines the state’s clean energy goals and burdens consumers,” said Anjuli Ramos-Busot, Director of the New Jersey Sierra Club. “PJM knows clean energy is cheaper, they know that we are seeing sky rocketing demand from data centers, and yet have chosen to continue to rely on dirty and expensive fossil fuels - it’s not only unjust, but it’s impractical. New Jerseyans deserve a grid that works for them, not a market that works against them to line the pockets of Big Oil and Gas.”
”Of course energy prices are going up — PJM hasn’t done much to keep them down since last year,” said Alex Ambrose, policy analyst at New Jersey Policy Perspective. “Two-thirds of the energy PJM plans to use comes from natural gas and coal, which are becoming less reliable and more costly. PJM hasn’t approved enough newer, cheaper energy sources that can actually operate on very hot and very cold days. Luckily, we have state leaders like Governors Shapiro and Murphy who were able to limit prices this time through their lawsuit settlement, or New Jerseyans would be seeing even higher bills next year.”
“The results of PJM’s latest capacity auction represents the highest price PJM could charge, and it’s New Jersey ratepayers who will pay the price. Thanks to Governor Shapiro’s leadership and Governor Phil Murphy’s strong support there was a cap on this auction and sadly PJM went right up to this ceiling. Once again, PJM is failing to connect clean energy projects in New Jersey to the grid, driving up costs and increasing electricity rates,” said Ed Potosnak, Executive Director, New Jersey LCV. “Clean energy is the cheaper, faster, and healthier approach. A 100% clean energy standard will create good-paying, local union jobs that can’t be outsourced, improve public health, and finally free New Jersey from PJM’s costly delays. We call on the legislature to act immediately and pass the 100% clean energy by 2035 bill. New Jersey families, workers, and communities can’t afford to wait.”
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About the Sierra Club: The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information about our work in New Jersey, visit www.sierraclub.org/new-jersey