By Frank Brill, EnviroPolitics Editor
Two years. Two auctions. One undeniable trend: PJM Interconnection’s latest Base Residual Auction confirms that energy costs are rising fast—and New Jersey ratepayers are shouldering the burden. The clearing price jumped again this year, from $269.92/MW-day to $329.17/MW-day, despite the introduction of a price cap meant to soften the blow.
But behind the numbers is a tangled crisis of policy, infrastructure, politics, and market inertia.
According to energy developers and clean power advocates, the price spike should serve as a strong “build signal,” indicating a growing need for new electricity supply. Yet PJM’s three-year closure of its interconnection queue is paralyzing response. Projects stuck in queue for more than six years face mounting costs and uncertainty—and with the queue unlikely to reopen before 2026, market participants say the region can’t build the needed clean resources in time to avoid further price hikes or reliability concerns.
“This is the market screaming for new supply—but PJM’s interconnection process is holding up a big red STOP sign,” said Jon Gordon of Advanced Energy United.
At the same time, Republican lawmakers are pointing to deeper systemic concerns. Senate Republican Leader Anthony M. Bucco (R-25) sharply criticized New Jersey’s energy strategy, saying the auction results reflect failures by state policymakers to balance affordability, reliability, and environmental goals.
“Trenton Democrats catered to the far-left wing of their party with unrealistic mandates and politically driven policies that ignore basic energy economics,” Bucco stated. “Now, ratepayers will see no relief for the 2026–2027 delivery year.”
Bucco emphasized that delays in retiring older fuel-based power plants are the only reason PJM avoided even worse auction outcomes. The continued reliance on these legacy plants, he said, reflects the grid’s vulnerability and the pitfalls of deprioritizing natural gas and embracing forced electrification
What’s the solution? Help us all out
New Jersey’s energy supply and pricing are a significant mess. If you have experience in the arcane arena of energy planning and regulation, we’d love to review your suggestions on fixing the problem(s). Send them to: editor@enviropolitics.com. We’ll publish what we see as the most helpful. Thanks for your insights.
