PJM Interconnection’s latest base-capacity auction shows tightening power reserves that could strain reliability and raise prices even with a 2.5% drop in cap space, as the N.J. Board of Public Utilities moves ahead with a plan to cut costs and strengthen the state’s grid for major upgrades.

“As we build New Jersey’s clean energy future, we are laser-focused on delivering maximum value to ratepayers by modernizing and streamlining our utility programs,” Ben Hertz-Shargel, board president, said…