Federal News
Congressman Pallone Urges FERC to Extend NJ Price Cap
March 19, 2026
Congressman Frank Pallone, Jr., Ranking Member of the House Energy and Commerce Committee, has formally urged the Federal Energy Regulatory Commission (FERC) to approve PJM Interconnection's proposal to extend the price cap on capacity auctions in New Jersey. This extension aims to provide temporary relief from surging electricity prices while longer-term solutions to address grid supply constraints and market challenges are developed. The action reflects ongoing efforts to stabilize electricity costs in the PJM region and mitigate financial impacts on residents and businesses.
- The extension of the price cap on capacity auctions is a critical interim measure to prioritize affordability in New Jersey's electricity market.
- Procurement professionals should anticipate potential adjustments in contract terms and pricing structures related to capacity and energy supply within the PJM footprint.
- Energy vendors and contractors may find opportunities to support grid reliability initiatives and market reforms driven by regulatory decisions at FERC.
- Stakeholders should consider the implications of regulatory actions on future procurement strategies and contract negotiations in the regional energy market.
While the price cap is not a silver bullet for the problems facing the PJM region, extending it is a critical first step toward prioritizing affordability.
— Frank Pallone, Jr., Congressman
Agencies
Federal Energy Regulatory Commission, New Jersey Board of Public Utilities, U.S. Energy Information Administration
Vendors
PJM Interconnection, L.L.C.