EPSA
State utility regulators can support reliable, affordable electricity by preserving competitive markets, removing barriers to new generation, improving demand forecasting, and ensuring investment risk remains with private investors rather than ratepayers.
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The 2028/29 PJM capacity auction results reflect rising electricity demand and reinforce that competitive markets are driving billions of dollars in private investment in new generation, while emphasizing the need to speed interconnection, permitting, and market reforms to bring additional power online.
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At a recent DC Public Service Commission hearing on rising electricity costs, stakeholders emphasized that growing demand will require significant new generation and infrastructure investment, while highlighting the role of competitive markets in attracting private capital, protecting consumers from investment risk, and maintaining reliability and affordability across PJM.
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Rising U.S. electricity demand is driving competitive power suppliers to rapidly expand capacity by upgrading existing power plants through uprates, fuel conversions, reactivations, and hybridization, enabling faster and more cost-effective grid reliability improvements than building new generation.
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A House E&C hearing underscored the challenge of meeting AI-driven power demand without raising consumer costs. Key themes included the need for accurate load forecasting, better use of existing infrastructure, and ensuring large energy users pay their share—highlighting the role of competitive power markets in delivering reliable, cost-effective solutions.
Read MoreUtilities are asking policymakers to shift the financial risks of new generation investments onto ratepayers, writes Todd Snitchler, president and CEO of the Electric Power Supply Association.
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