PJM price model and your utility bill

Recently there are many complaints across the east coast (13 states falling under PJM, 67 million customers) about the high utility price. MD Senator Katie Fry Hester organized a meeting to talk about PJM price models and data center issue. I am attaching different price models shared from her office.

More slides are saved here: https://drive.google.com/drive/folders/16s2nfhPeaIx6mQxThpO52nLtZ1lTrnC3?usp=drive_link

A different approach:

I asked a question during the virtual meeting. Could we have a rate-payer centered model? I support having data centers. However, they need to share the cost of building infrastructures.

So the price model starts where considering the price increase will be limited by 3% every year, traverse back to see how much every other user need to pay to increase electricity capacity?

PJM has not done such analysis, or probably they would not. The Federal Energy Regulatory Commission should demand to do a study like that.

Another issue always puzzles me: we, as rate-payers, pay energy companies to design, build, finance and run our energy portfolio, what’s the exact power do we have to influence the decision of a private company? Is there anything wrong with this model for affordable energies?