GEMM January Newsletter
- Pragatie
- 2 days ago
- 5 min read
Keeping you up-to-date on the latest in renewable energy and sustainability.
Welcome to the January edition of the GEMM Energy Monthly Newsletter. We aim to bring you the latest in renewable energy advancements, highlight sustainability efforts, showcase GEMM's current projects, and provide valuable insights for a brighter, more sustainable future.
When the Electric Bill Becomes a Ballot Issue
In Connecticut’s 2026 race for governor, one thing is clear: electricity bills are no longer just a household headache — they’re a political flashpoint.
With Connecticut ranking among the states with the highest electricity costs, rising power prices are showing up everywhere in campaign messaging. From kitchen-table ads featuring families staring at shocking bills to candidates promising relief, energy affordability has officially entered the spotlight.
And it’s not just a local problem. Across the country, electricity prices have been climbing faster than inflation, pushing politicians in states like New Jersey, Virginia, and Georgia to rethink how they talk about energy. The conversation has shifted from how green can we be to how do we keep the lights on without breaking the bank.
In Connecticut, Gov. Ned Lamont is leaning into an “all-of-the-above” strategy — renewables, nuclear, and yes, natural gas — arguing that more supply is the fastest way to control costs. Republicans, meanwhile, are zeroing in on the state’s public benefits charge, calling it a major driver of high bills and pushing to reduce or eliminate it. On the left, progressive challengers want clean energy funded through state bonds instead of customer bills and are raising red flags about energy-hungry data centers.
Complicating matters further? Federal policy shifts. Paused offshore wind projects, rolled-back clean energy subsidies, and a renewed push for fossil fuels have injected uncertainty into long-term planning — and may push even more costs onto ratepayers.
Experts agree on one thing: there’s no simple fix. Grid upgrades, infrastructure costs, and rising demand mean prices won’t fall overnight. But what has changed is the politics. Electricity is no longer a background issue — it’s front and center.
In 2026, Connecticut voters won’t just be choosing a governor. They’ll be choosing how much they’re willing to pay to keep the lights on.
PJM Capacity Prices Just Hit Another Record - Here's Why It Matters
PJM has done it again. Its latest capacity auction for the 2026–27 delivery year cleared at a record $329.17/MW-day, nearly 22% higher than last year and right up against the market’s price cap. For customers across PJM’s 13-state region and Washington, D.C., that could translate into electricity bill increases of roughly 1.5%–5%.
Capacity prices reflect the cost of ensuring power is available during periods of peak demand—heat waves, cold snaps, and other system stress events. This year’s results send a clear signal: the grid is under growing pressure.
What’s Driving the Spike?
At its core, the problem is simple: demand is growing faster than supply. Peak load forecasts jumped by roughly 5,500 MW, fueled largely by the rapid expansion of data centers and other electricity-intensive uses. While some new generation did clear the auction, it wasn’t enough to meaningfully ease the imbalance.
PJM ultimately procured 134,311 MW of capacity—sufficient to meet reliability requirements, but with little margin to spare. As a result, prices once again slammed into the cap. Without a special agreement involving Pennsylvania’s governor, they could have been even higher.
Compounding the issue, thousands of new energy projects—primarily solar and other clean resources—remain stuck in PJM’s interconnection queue. With new supply slow to come online, PJM has had to rely more heavily on existing thermal plants to maintain reliability.
Winners, Losers, and Policy Tensions
For power plant owners, the outcome is a win. Elevated capacity prices boost revenues for gas, coal, and nuclear plants, slowing retirements and even reversing them in some cases. Roughly 1,100 MW of generation reversed prior shutdown plans, and rather than building new plants, many companies are choosing to consolidate by acquiring existing assets.
For ratepayer advocates, the results raise red flags. Critics argue that PJM’s market rules and interconnection delays disadvantage clean energy, batteries, and demand response, keeping lower-cost resources sidelined while older, more expensive plants continue to clear the market.
Politics are also back in play. A potential Trump administration is expected to point to these auction results as evidence that coal and other thermal resources must remain online for reliability—an argument already fueling legal challenges and policy debates.
What Comes Next?
With electricity demand still climbing and new supply struggling to break through bottlenecks, many analysts expect more capped auctions ahead. PJM’s next capacity auction later this year will be another critical test. Unless interconnection reform accelerates and energy efficiency improves, today’s “record high” may not hold that title for long.
Higher Electric Bills? Infrastructure is the Real Solution
Electricity rates across Pennsylvania are rising again this winter—and while wholesale market changes are grabbing headlines, they’re not the real long-term fix.
The truth is simple: the cheapest energy is the energy you don’t have to buy.
Starting December 1, 2025, customers served by Met-Ed, Penelec, Penn Power, and West Penn Power will see higher supply costs driven by PJM capacity charges. These wholesale increases are outside customer control—and they’ll likely continue as demand grows and the grid tightens.
But here’s the part that is in your control: your infrastructure.
Why infrastructure upgrades matter more than rates?
Chasing the lowest electricity rate can feel productive—but it doesn’t change how much power your building actually uses.
Modern infrastructure upgrades do.
Investments like on-site generation, energy storage, microgrids, and efficiency improvements:
Reduce total energy consumption
Lower exposure to grid price volatility
Improve reliability during outages and peak demand
Deliver predictable, long-term savings
Instead of reacting to rate hikes every six months, infrastructure upgrades put you in control of your energy future.
Reliability isn’t optional anymore.
Between aging power plants, extreme weather, and rapidly growing demand from data centers, the grid is under real stress. PJM’s rising capacity costs are a signal—not a surprise.
Buildings that rely entirely on the grid will continue to feel that pressure. Buildings with resilient, modern energy systems won’t.
And yes—wholesale savings still help.
Once your energy infrastructure is optimized, competitive supply rates become the cherry on top.
Lower wholesale prices can enhance savings—but they should never be the foundation of an energy strategy.
Electricity prices will keep changing. Infrastructure is what lasts.
If you want stability, resilience, and real cost control, the solution isn’t just shopping rates—it’s building smarter energy systems that work for you, not against you.
Stay connected!
We're excited to continue this journey with you, by sharing news and insights on sustainability and progressing our path toward a better future. Stay tuned for our newsletter next month.
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