Pennsylvania and PJM Interconnection have reached an agreement to prevent steep increases in electricity bills. Gov. Josh Shapiro’s administration announced Tuesday that PJM, which manages the state’s power grid, will reduce the maximum price energy generators can bid for electricity. This move aims to avoid a potential “runaway auction” of energy prices due to rising demand and delays in new projects.
The complaint filed by Pennsylvania and several other states with the Federal Energy Regulatory Commission highlighted concerns about skyrocketing demand from AI data centers and unreliable fossil fuel plants, coupled with a backlog of pending energy projects. PJM’s next capacity auction in July 2025 could have led to billions in unnecessary costs for millions of residents.
Opponents argue that the price cap reduction will only address this summer’s prices and not long-term increases. PennFuture, an environmental group, warned that future price hikes could rise by up to 40%. The organization calls for addressing the backlog of new energy projects and prioritizing renewable energy sources.
A spokesman for PJM did not respond to a request for comment, but the grid operator has noted that many projects have cleared its processes despite supply chain issues.
Source: https://penncapital-star.com/briefs/shapiro-administration-announces-settlement-to-prevent-billions-in-excessive-electricity-costs