DOVER, Del. — Delaware’s Public Advocate is urging PJM Interconnection to extend a key price cap on its capacity auction, warning that without safeguards, consumers could face billions of dollars in higher electricity costs.
On Jan. 30, Delaware’s Public Advocate Jameson Tweedie called on PJM, the regional grid operator serving Delaware and other states, to maintain a cap on capacity prices to protect ratepayers. On Feb. 12, PJM agreed to seek an extension of the price cap for the next two auctions.
PJM uses the capacity auction, also known as the base residual auction, to ensure enough electricity generation will be available in future years. Over the past two years, DPA says the auction price has increased by more than 1,000%, and would have climbed even higher without the cap in place.
According to the Division of the Public Advocate, PJM’s Independent Market Monitor determined the price cap has already prevented $13 billion in additional capacity market costs, which are ultimately passed on to consumers. The monitor also found that escalating costs are driven by unprecedented increases in electricity demand, primarily from hyperscale data centers, which have added more than $23 billion to auction costs over the last three auctions.
In comments submitted to PJM, Tweedie said the market is not functioning as intended and that consumer protections must remain in place.
“DPA believes the price collar should stay in effect until it is evidenced that new generation/supply has come online at a level sufficient to fully meet demand…. [S]ince the cap was put in place, these conditions have only worsened and are likely to last years until supply chain and other delays are resolved. Any auction conducted in such circumstances will not accomplish the purpose of the auction and therefore would not result in just and reasonable rates.”
He also warned that existing generators could benefit at the expense of consumers.
“PJM must take action to protect consumers from paying windfall profits to existing generators – a wealth transfer from consumers – that cannot result in development of sufficient new capacity in time to meet demand.”
The Division of the Public Advocate said Tweedie’s comments are part of ongoing efforts to represent Delaware ratepayers in regional energy matters, particularly as rapid growth from large energy users such as hyperscale data centers reshapes the electricity market.
Those efforts include:
Urging PJM to select leadership and board members “focused on the interests of the consumers that PJM serves” in a July 23, 2025, letter.
Submitting comments on Aug. 27, 2025, arguing that the interests of consumers “must be an integral consideration throughout” PJM’s process and that PJM should “avoid socializing the costs of large load additions onto other ratepayers.”
Joining other consumer advocates on a proposal aimed at shielding consumers from price increases caused by new large energy users in a Nov. 17, 2025, joint proposal.
Forming the Affordability and Reliability for Residential Consumers user group within PJM.
Proposing a reliability backstop auction mechanism designed to protect existing customers from price increases tied to new large energy users, scheduled to be presented Feb. 17, 2026.
The Division of the Public Advocate advocates for the lowest reasonable rates on behalf of residential and small commercial consumers, consistent with maintaining adequate utility service and equitable rate distribution among all customer classes.