New Jersey Governor Phil Murphy is calling on federal regulators to investigate whether potential market manipulation played a role in the sharp rise in regional energy prices expected to impact consumers this summer.
In a letter sent Friday to the Federal Energy Regulatory Commission (FERC), Murphy requested that the agency’s enforcement division examine the results of PJM Interconnection’s 2024 Base Residual Auction (BRA), which set electricity capacity prices for the 2025/2026 delivery year. The governor expressed concern that irregularities may have led to inflated costs that could significantly increase electricity bills for residents and businesses across the region.
PJM Interconnection manages the electricity grid for more than 65 million people across New Jersey and 12 other states. Through its auction system, PJM secures commitments from power producers to meet future electricity demand. The 2024 auction resulted in nearly $14.7 billion in costs—an almost sevenfold increase from $2.2 billion the year prior. PJM has said the outcome will likely translate to a $20–$25 increase in the average monthly electricity bill for customers.
Murphy’s request to FERC follows months of concerns raised by his administration and other states over the spike in costs. He cited findings from PJM’s Independent Market Monitor (IMM), which reported that the auction results were “significantly affected” by actions such as the withholding of resources and did not reflect true market supply and demand. According to the IMM, the final prices were roughly twice as high as necessary.
In his letter, Murphy urged FERC to investigate whether those results were influenced by improper market behavior and to take corrective action if necessary. He also emphasized the need for long-term changes to PJM’s market structure to prevent similar outcomes in the future.
“FERC must ensure that PJM delivers power in a reliable and cost-effective way,” Murphy said. “Ratepayers should not bear the burden of potential market failures.”
The governor’s concerns come as regional officials continue to push for reforms. In recent months, New Jersey has joined with Pennsylvania, Maryland, and Illinois in urging FERC to review PJM’s price caps and market operations.
Despite these issues, regional collaboration has yielded some progress. PJM recently announced an agreement projected to save consumers $21 billion over two years, following advocacy from Murphy and other governors.
The Murphy administration continues to promote a wide-ranging approach to reduce energy costs and increase grid reliability, including investments in solar energy, energy efficiency, and a forthcoming energy storage incentive program. New Jersey now hosts more than five gigawatts of in-state solar capacity.
Residents struggling with utility bills are encouraged to apply for assistance through the New Jersey Department of Community Affairs (nj.gov/dca/dcaid) or contact the State’s Utility Assistance Hotline at 1-800-510-3102.
FERC has not yet commented on whether it will initiate the investigation requested by the governor.