In this Episode
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Host: Todd Snitchler, President and CEO, Electric Power Supply Association
Guests:
- Travis Kavulla, Vice President of Regulatory Affairs, NRG
- Marji Phillips, Senior Vice President of Wholesale Market Policy, LS Power
- Glen Thomas, President, P3
- Arnie Quinn, Senior Vice President of Regulatory Policy, Vistra
Rising electricity costs, historic demand growth, and high-stakes debates over who controls the grid have made PJM — the nation’s largest regional power market — front-page news. But what’s really driving these headlines, and what does it mean for keeping the lights on reliably and affordably?
In this episode of Energy Solutions, EPSA President and CEO Todd Snitchler sits down with leading experts from some of the largest competitive power generation companies in the U.S. — Travis Kavulla (NRG Energy), Marji Phillips (LS Power), Glen Thomas (P3), and Arnie Quinn (Vistra Corp.) — to break down the key points from the PJM Governors’ Conference on September 23 in Philadelphia.
They explore whether competitive markets are still working, what reforms are the most urgent, and how competitive power suppliers can meet growing energy demand while keeping costs down for consumers.
They also dive into capacity auctions, consumer bills, political pressures in PJM, utility re-regulation, and why a clear path forward is possible.
Topics include:
- Why accurate load forecasting is critical as AI and data centers expand.
- The role of states in PJM governance and the risks of political overreach.
- How competitive markets protect consumers compared to utility-owned generation.
- What’s really driving up higher electricity bills, and why capacity costs aren’t to blame.
- The high cost for consumers if states leave PJM.
- Smart reforms to speed up interconnection, encourage bilateral contracts, and strengthen reliability.
Power Quote:
“When you rely on the PJM market to drive new investment, the investors take the risk. And if their technology becomes obsolete or prices go down, consumers don’t bear that risk.”
MARJI PHILLIPS, SENIOR VICE PRESIDENT OF WHOLESALE MARKET POLICY, LS POWER
Key Takeaways
Politics add Risk to Markets: Regulatory uncertainty makes it harder to invest in new generation and keep existing resources online.
“Investment in new generation is predicated upon some kind of longer-term revenue stability in order to get that capital in the ground… you’ve really increased the risk in PJM over time that longer-term contracts will have the value of their bargain eroded by political interventions… The Commission and PJM are constantly changing the rules, and now governors want to always change the rules… a vicious cycle has started.” – Travis Kavulla, NRG Energy
Competitive Markets Protect Consumers: Utility-based generation shifts risk onto consumers, but in PJM, investors bear it.
“When you rely on the PJM market to drive new investment, the investors take the risk. And if their technology becomes obsolete or prices go down, consumers don’t bear that risk.” – Marji Phillips, LS Power
Competitive Markets Work When Stable: Capacity prices rise and fall, and developers respond to market signals to decrease or increase supply.
“The auctions that preceded the two with quote-unquote record high prices had record low prices, and that first auction that popped happened right after 6,000 megawatts of generation left the market. There was a rational response to very low prices, and there is a very rational response to high prices. And we’re having a bunch of conversations, and we’re doing a bunch of things ourselves, that respond when the price signals tell us that we need to respond.” – Arnie Quinn, Vistra Corp.
Accurate Load Forecasting Is Critical: Over- or underestimating demand can cost consumers billions.
“In a world where we’re not highly confident in how much new demand is coming, a world where you’re insulated from guessing too high – and that’s exactly what the utilities are – if they guess too high, they’re still going to get paid, they’re still going to recover costs… It’s especially important that we rely more on the competitive supplier. We will absolutely respond to the needs of our customers, new and existing, but we’re not going to respond until we have a level of confidence that new customers are going to come. And the utilities just don’t operate with the same frame of mind.” – Arnie Quinn, Vistra Corp.
Collaboration Is Needed: State regulators, PJM, and competitive suppliers must work together through appropriate channels to balance growth, reliability, and affordability.
“I thought it was a very helpful and engaging conversation… I’m not sure there has been a gathering that big of folks just talking about PJM issues, and it’s because of the governors, they were able to assemble that… I think there were some very constructive observations that were offered, and some takeaways that can be acted on.” – Glen Thomas, P3
Producer: Christina Nyquist, senior director, communications, EPSA
Associate Producer, Audio Editor: Anna Varnell, associate, communications, EPSA
Music Composed by: Let Me Hold That, Ltd.
