Debate Over Utility Monopoly vs. Competition Intensifies Amid Rising Power Costs

A recent opinion column challenges a Taxpayers Protection Alliance claim that PJM’s grid rules prevent utilities from building power plants, labeling the claim false. It points to PSEG’s exploration of generation projects via its PSEG Power subsidiary and PPL’s joint venture that has already secured 5 GW of capacity in PJM, showing that utilities can compete in the market. The author argues that a return to monopoly ownership would let utilities offload generation risk onto residential customers while still earning guaranteed returns, citing the costly overruns at Georgia’s Alvin W. Vogtle plant as an example.

Consumer advocates such as Maryland People’s Counsel David Lapp and New Jersey Rate Counsel director Brian Lipman reject monopoly proposals, asserting that competition benefits ratepayers. The article concludes that reinstating an antiquated monopoly model would worsen bills for families already facing high electricity costs.