Washington, D.C. – The nation’s largest grid operator, PJM Interconnection, yesterday announced the results of its 2028/2029 base residual auction designed to ensure there is sufficient power to meet future demand. In response, America’s Power President and CEO Michelle Bloodworth released the following statement:
“The results of PJM’s auction again demonstrate that electricity demand continues to outpace supply. For the second year in a row, the amount of generating capacity procured in the auction fell short of PJM’s reliability requirement, putting the residents of its 13-state region at greater risk for blackouts.
“The best way to remedy this power shortage is to preserve the existing coal fleet. Unfortunately, despite this shortage, more than one-quarter (roughly 10 GW) of the coal fleet in the PJM region is scheduled to retire within the next five years. Keeping these vital coal plants open would help avoid future power shortages in the region.
“The amount of coal power capacity offered fell by 3,541 MW UCAP compared to last year’s auction, more than triple the 1,078 MW of new capacity offered by wind, solar, and battery storage resources. One of the reasons for planned coal plant retirements are legal settlement agreements prompted by environmental advocacy groups and sometimes the Environmental Protection Agency under prior administrations. These agreements are particularly problematic given that PJM’s auctions have repeatedly cleared short of PJM’s reliability requirement and demand continues to outpace supply.
“These coal plants also play an essential role in keeping electricity prices affordable when other fuels are too expensive or in short supply as we saw during Winter Storm Fern last January. During the storm’s peak day, having coal as part of the generation mix saved ratepayers almost $1.15 billion according to a report by Energy Ventures Analysis (EVA).
“Recognizing coal’s importance to ensuring reliable and low-cost power, the Trump Administration is actively working to ensure coal plant operators have time to modernize their facilities and keep them operating.
“This latest PJM auction is another reminder that meeting America’s growing need for electricity will require our coal fleet to continue operating.”