Why PJM Capacity Prices Are Spiking

David Roberts: [104.560 sec] just to ensure that there's always enough capacity available to cover any possible demand spikes or supply losses. [113.140 sec] The thing is, PJM is very slow to interconnect new power generation projects. [120.620 sec] It has a long and extremely congested interconnection queue. [125.880 sec] Meanwhile, gigawatts worth of data centers are banging on the door, asking to be hooked up, pushing demand higher and higher. [136.260 sec] This means that capacity in coming years is increasingly valuable. [143.080 sec] Capacity prices are skyrocketing, consumer bills are rising, and everyone is angry. [151.660 sec] Thus, all the yelling. [153.760 sec] To discuss what is going on in PJM, what people are doing about it, and what might happen next, I have with me the perfect guest, Clara Summers from the non-profit Citizens Utility Board, or CUB, as they are affectionately known.