Gov. Josh Shapiro is pointing to the region’s grid operator, PJM Interconnection, as a major factor behind rising electricity costs for Pennsylvania consumers, arguing the agency has not moved quickly enough to bring new energy projects onto the system.
Shapiro said PJM is failing to shrink the growing gap between electricity supply and demand, a dynamic that has contributed to record-high prices in recent capacity auctions. Those costs are ultimately passed along to households and businesses through their utility bills.
PJM operates the power grid across 13 Mid-Atlantic and Midwestern states, serving about 67 million people. A key part of its role is conducting capacity auctions to ensure there is enough electricity available during periods of peak demand, such as heat waves or severe winter cold spells. In recent years, those auctions have produced unprecedented prices, fueling higher consumer costs.
Shapiro has long criticized the system, calling it flawed and broken. Two years ago, he sued PJM over what he said were excessive rates, later negotiating a price cap that he claims has saved ratepayers more than $18 billion. Last month, Shapiro joined a bipartisan group of governors in urging President Donald Trump to press PJM to add more power sources to the grid and extend the cap.
PJM, however, rejected Shapiro’s claims. Spokesman Jeff Shields said the agency is working to bring new generation online and disputed the suggestion that PJM is responsible for setting retail electricity rates.
Shields emphasized that pricing decisions for consumers are made through the Pennsylvania Public Utility Commission in coordination with investor-owned utilities such as PECO, PPL and Duquesne.
While PJM does not directly set retail rates, Shields acknowledged that the wholesale power markets it operates make up part of the final cost on customer bills. He said growing demand, driven in part by the expansion of data centers powering the digital economy, has placed additional strain on the system.
Shields also noted that more than 55 gigawatts of approved energy projects are delayed for reasons outside PJM’s control, including state and federal permitting hurdles, supply chain issues and financing challenges.
PJM said it has reformed its interconnection process and expects new projects entering the queue now to clear engineering reviews within one to two years, ahead of construction timelines.
Source: WHYY