A recent op-ed about electricity prices from the Taxpayers Protection Alliance uses misleading arguments to justify resurrecting monopoly control of electricity generation as a solution to rising prices. It repeatedly asserts that PJM, the regional grid operator for much of the mid-Atlantic, limits who can generate power. That’s patently false.
Investor-owned utilities can — and already are — building generation through competitive subsidiaries in PJM. PSEG, a New Jersey utility, said in its most recent earnings call that it is exploring opportunities in PJM through its unregulated generation subsidiary, PSEG Power. PPL, a utility in Pennsylvania, recently told investors that PJM has already accepted 5 gigawatts of generation as part of a joint venture with PPL. That project and others should not be possible if utilities were really prevented from building or owning generation.
