The resolution urges the Federal Energy Regulatory Commission (FERC) to reject the results of the PJM Interconnection, L.L.C.'s 2025/2026 Base Residual Auction (BRA) and to require a rebid of the auction. PJM, which operates the electric transmission system across several states including New Jersey, is responsible for ensuring reliable and cost-effective energy. The July 2024 BRA resulted in a resource clearing price nearly ten times higher than the previous auction, leading to significant concerns about potential market manipulation and flaws in PJM's capacity market construct. These price increases are projected to raise average monthly electric bills for New Jersey residents by approximately 17 to 20 percent starting in June 2025.

The resolution highlights that the New Jersey Board of Public Utilities, as a member of the Organization of PJM States, Inc. (OPSI), has no control over the auction results due to FERC's regulatory authority. The OPSI and the Independent Market Monitor have identified issues with the BRA that could lead to artificially inflated prices, which do not accurately reflect supply and demand. Given the substantial impact on New Jersey ratepayers and the potential for increased electricity costs, the resolution calls for FERC to take action to ensure a fair and reliable capacity auction process.