Lawmakers from New Jersey’s Senate and Assembly pressed PJM Interconnection and state energy officials on March 28 over a sharp increase in capacity-auction prices that will raise household electric bills this summer. PJM officials and independent witnesses said a mix of market-rule changes, unexpectedly large demand growth and delays in connecting new supply to the grid combined to push the most recent auction results sharply higher.

PJM senior vice president Asim Haq said the region’s long period of low demand and low prices left little “wiggle room” when forecasted demand jumped. He and other witnesses said the biggest recent demand drivers have been large data-center projects and faster-than-expected electrification. “When demand increases and supply decreases, not only does that mean we are headed towards a reliability challenge, but it also means prices go up,” Haq told the committees.

PJM’s market monitor and several state witnesses argued that the spike was not only supply-and-demand economics. Brian Lipman, director of New Jersey’s Division of Rate Counsel, cited the PJM market monitor’s report that said design and market-power issues amplified the most recent price signal and that some market rules contributed materially to the high clearing price. Lipman and others cited ongoing court and regulatory filings that seek to limit the near-term auction clearing price and prompt rule changes.

New Jersey’s Board of Public Utilities President Christine Gould Sidovi and PJM both described recent steps to blunt the impact on consumers: a governor-led FERC filing and court action to cap the next auction, administrative filings to change how certain resources are treated in the auction, and a PJM proposal to open a “reliability resource” lane to prioritize shovel‑ready resources. Gould Sidovi said the FERC‑directed changes would reduce projected rate impacts but warned that prices overall will still be higher than in prior low-price years.

Witnesses repeatedly urged faster interconnection of projects already in PJM’s queue. PJM said it has advanced large volumes of new-generation and storage projects through queue reforms but acknowledged a backlog remains; PJM officials called for accelerated transmission planning and more state-level transparency about large new loads. Independent analysts said storage and projects already cleared through interconnection are the most realistic short-term additions to reduce prices in the next 18–36 months.

Lawmakers pressed PJM for clearer data about who bid into the auction and the identity and size of demand commitments (notably data centers) that have reshaped short‑term load forecasts. PJM said its stakeholder process and the Federal Energy Regulatory Commission govern how market rules change and that multistate coordination is necessary because the grid and markets span many jurisdictions.

What’s next: PJM and state officials said they will continue to pursue both market-rule reforms and practical steps to connect cleared projects. Lawmakers signaled they will press for more state‑level transparency on project queues, transmission planning and steps to shield low‑income customers from immediate price shocks.