The regional power grid operator fell short in securing electric reserves, it said Tuesday, even as the price for electricity hit the maximum ceiling.
Ohio is among 13 states within PJM Interconnection, the regional grid operator, which coordinates how electricity flows—at times, functioning like traffic control.
PJM’s latest auction, the results of which released Tuesday, showed that electricity demand regionally is moving faster than generation, meaning electric bills in Ohio will stay high for some time.
“Today’s auction sends the wrong message,” an Ohio Consumers’ Counsel spokesperson wrote in an email Tuesday. “Consumers should not have to pay record high prices and still face growing reliability concerns.”
Even at that $325 per megawatt-day price, PJM still fell short of its own reliability goal—a 20% reserve margin target—during its 2028-2029 auction.
PJM cited data center growth as one major factor driving demand. But the Ohio Manufacturers’ Association said utilities themselves are overstating demand in their forecasts, which is causing the costs to consumers to increase.
“We’ve had all these consecutive auctions that just go sky high, customers have been losing at every single one of these, it’s time for some additional oversight.” President Ryan Augsburger said in an interview. “What is the problem, in plain English? PJM counts uncertain future demand as though it’s guaranteed.”
In June, Sen. Mark Romanchuk (R-Ontario) and Sen. Paula Hicks-Hudson (D-Toledo) introduced Senate Bill 457, creating more forecast oversight. It has yet to get any hearings, and faces a short window for action, since the legislative session ends in December.
