Exelon Seeks to Protect Customers from “Unreasonable Costs” in New FERC Complaint

Complaint is key part of The Exelon Promise to address energy affordability through policy solutions and market reforms

WASHINGTON--(BUSINESS WIRE)--Exelon today filed a complaint with the Federal Energy Regulatory Commission (FERC) challenging PJM Interconnection LLC’s current capacity auction schedule. The complaint calls for a targeted reform aimed at protecting customers from unreasonable costs while regional stakeholders continue to chart a path forward on holistic market reforms.

PJM’s capacity market is producing high prices without stimulating necessary investment at a time when customers are already facing significant affordability pressures. The current approach compounds these challenges by locking in capacity costs years before power is needed, and when forecasts of future supply and demand are rapidly evolving.

Exelon is asking FERC to require a prompt auction schedule that moves those decisions closer to the delivery period, when PJM has better information about how much electricity the region needs and how much generation is actually available. The change would bring PJM in line with other capacity markets in the country that already use prompt auctions and represents a significant, targeted and surgical step on the path toward broader reforms for PJM. It will also allow stakeholders time to develop new rules to ensure reliability and affordability of generation supply in the region and then transition timely to those rules.

"Customers are facing a real affordability challenge, and we are stepping up through The Exelon Promise to advocate for practical solutions to keep their bills as low as possible," said Colette Honorable, Exelon Executive Vice President, Chief Legal Officer, Compliance and Corporate Secretary. "PJM's recognition that its markets need to evolve is an important step, but customers cannot afford to wait for a full package of changes to be developed. Exelon is taking this action at FERC to push for a narrow change that can meaningfully contribute to producing capacity market prices that reflect actual market conditions and better protect customers from unreasonable costs."

A move to a prompt auction schedule alone will not solve the affordability challenges facing the region. PJM also urgently needs more generation to keep pace with growing electricity demand. Exelon supports reforms that can help bring additional supply onto the system while ensuring the capacity market works as efficiently as possible for customers.

The filing is part of Exelon’s broader advocacy to address energy affordability and keep customer bills as low as possible. Through the Exelon Promise, the company is committed to advocating for solutions that protect customers from high costs while maintaining the safe and reliable energy service they depend on.