Electricity customers in Maryland could see their billsjump by almost 20% next year.
Here’s what you better know about whyelectric ratesmight go up in your part of the country.
What is an energy capacity auction?
Large swaths of the country manage their electrical systems through something called an independent system operator.
Each ISO is different, but usually these energy auctions happen annually.
These energy capacity auctions, while they may seem boring, matter a lot.
“When you flick a switch, do you like your lights to come on?”
What happened in the PJM Interconnection auction?
In its capacity auction in July,PJM reported some eye-popping cost increases.
Why are we paying so much more for power?
Experts say there are a few big factors that are making these prices skyrocket.
“Everything’s just crashing into it,” Postma said.
The supply-chain issues of the pandemic drove up prices for complements and labor.
Critics of PJMhave saidanother issue is mismanagement within PJM itself.
How does this affect electricity bills?
“It’s not a one-one, and it’s going to vary,” said Postma.
That’s because there are many steps between a capacity auction and the rates customers see on their bill.
What does this mean for the rest of the country?
PJM is not the only grid operator dealing with these challenges.
“That doesn’t come without added costs.”
