Why Electricity Prices Are Soaring in The Largest Grid Region, Explained in 5 Charts

August 14, 2025 | njspotlightnews.org

PJM Interconnection, the nonprofit that manages the country’s largest electricity grid region, is barely known by the general public and almost never mentioned by elected officials — except when something bad happens.

Well, something bad has happened. For two years in a row, PJM’s process for ensuring the grid has sufficient power plant capacity has resulted in record high prices, which will get passed on to consumers. The results are tied to rising electricity demand for data centers and a bottleneck in approving grid connections for new projects.

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NJ SEED: Another informative read about the problems faced by the PJM grid and the increasing electricity demand.