Why Electricity Prices Are Soaring in Blue States Over the past two decades, the divergence in electricity rates among U.S. states has grown increasingly stark. While in 2004 the average residential electricity rate in the five most expensive states was only twice as high as in the five most affordable states, today it is 2.6 times higher. This widening gap reflects the growing differences in state approaches to energy production, regulation, and climate policy, which have created distinct regional… Read More »

Why Prices Soared in a Recent Auction Held by a Major Electric Grid Operator Prices soared in the market that pays electricity generators to be available to meet future demand in the PJM Interconnection, prompting policymakers, regulators, and researchers to debate the potential causes of increasing prices, along with solutions. This summer, you may have seen some buzz around the PJM Interconnection, the regional transmission organization that manages the electric grid in 13 states in the Midwestern and eastern United States, along with Washington,… Read More »

Texas power demand breaks all-time record amid searing heat, grid operator reports  Demand for power in Texas smashed an all-time record Tuesday as homes and businesses cranked their air conditioners in response to searing heat. With much of the state under an excessive heat warning, demand reached 85,559 megawatts late Tuesday afternoon, said a spokesperson for the Electric Reliability Council of Texas, which runs the state’s grid. That topped the previous record of 85,508 set in August 2023. Widespread power outages… Read More »