April 22, 2025

New Jersey governor demands FERC probe into PJM capacity auction, citing potential market manipulation

Exorbitant price increases in PJM’s latest capacity auction are projected to cost New Jersey ratepayers $1.7 billion, prompting calls for the investigation.

Auction Scrutiny: New Jersey Governor Phil Murphy (D) formally requested that FERC deploy its market enforcement division to investigate PJM's July 2024 capacity auction for potential market manipulation, according to an April 16 filing. The auction saw a dramatic price surge to $270/megawatt-day from $28/megawatt-day, resulting in a projected $14.7 billion cost increase for consumers across PJM's footprint. Market Flaws: ...

Details:

Filing Date: April 16, 2025

Docket Numbers:

ER25-682

Short Summary:

New Jersey Governor Phil Murphy (D) has formally requested that FERC deploy its market enforcement division to investigate PJM’s July 2024 capacity auction for potential market manipulation, according to an April 16 filing. The auction saw a dramatic price surge to $270/megawatt-day from $28/megawatt-day, resulting in a projected $14.7 billion cost increase for consumers across PJM’s footprint.

Impact Level:

Categories:

Policies & Rulemakings

Tags: Capacity Market, Investigation, Market Manipulation, Ratepayer Impacts

Entities: New Jersey Governor

Markets: PJM Interconnection (PJM)

Regions: Mid-Atlantic & Midwest

States: New Jersey

Regulators: FERC

Courts:

Documents:

Capacity Market – Tariff Amendment – Comments