Emily Pomilio (480) 286-0401, emily.pomilio@sierraclub.org
Thomas Schuster, (814) 915-4231, tom.schuster@sierraclub.org
Philadelphia, P.A. — PJM Interconnection, the regional electric grid operator for 13 states including Pennsylvania, announced the results of its capacity auction yesterday. The auction ensures that the region has enough electric generating capacity to keep the lights on in 2021. These results confirm that PJM is continuing a trend of procuring much more generating capacity than is needed for the region. As of now, it exceeds the amount necessary by almost 6 percent, which equates to over 9,300 extra megawatts of excess power, or about 10 large power plants that are unnecessary. This extra capacity artificially adds about $530 million in costs for consumers with little reliability benefit.
The auction results come as FirstEnergy has requested an emergency federal bailout of all of the merchant coal and nuclear plants in the region, and PJM itself has proposed to change this auction in the future that would raise costs for states and consumers that prefer clean energy. The Trump Administration and the Federal Energy Regulatory Commission are considering the requests despite widespread condemnation from market observers and stakeholders and a lack of necessity for grid reliability.
In response, Thomas Schuster, Pennsylvania Senior Campaign Representative for the Sierra Club, issued the following statement:
“Yesterday’s results show we actually have significantly more power generation than we need, and ratepayers should not be forced to pay higher prices for these extra power plants. These results continue to reinforce the fact that the Department of Energy (DOE) should not intervene to keep nuclear and coal plants slated for retirement online because there is no reliability emergency, and the Federal Energy Regulatory Commission should reject PJM’s capacity market proposals. We should not further distort competitive markets simply because some aging plants can’t make a profit. Instead, we need to ensure consumers get the clean energy they want and develop fair, economic transition plans for workers at these obsolete power plants and the communities hosting them.”
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with more than 3 million members and supporters. In addition to helping people from all backgrounds explore nature and our outdoor heritage, 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, visit www.sierraclub.org.