Governors launch collaborative that will push for reforms at grid operator PJM

PJM is based in the Philadelphia suburb of Audubon. The organization has been credited with avoiding outages within the grid, but has been  criticized for a backlog of mainly solar projects that have not made their way through an approval process and wholesale auctions that have led to sharp increases in electric bills.

At the  summit this week in Philadelphia, more than 450 stakeholders from across PJM discussed  rising energy costs, grid reliability, and PJM’s governance issues.

PJM, named after the founding states of  New Jersey, Pennsylvania and Maryland manages the grid in the Mid-Atlantic and a portion of the Midwest.

Pennsylvania Gov. Josh Shapiro, who helped organize the group,  warned that  if PJM fails to act decisively, Pennsylvania and other states may be forced to consider alternatives to the current PJM grid. Shapiro has been a vocal critic of PJM.

“Rising electricity costs are stretching the paychecks of working Delawareans, from small business owners trying to budget to families just trying to make ends meet," said Meyer. "Large new load projects like data centers are part of the story, but so are delays in bringing more power online and permitting regulations that haven’t kept up with diverse needs. With the PJM Governors’ Collaborative, we’re insisting on accountability and a stronger voice for states in how our grid is managed. Together, we can bring new generation online faster and ensure every Delaware family has a utility bill they can manage."

According to a release from Shapiro's office,  "PJM has assumed greater responsibility for balancing supply and demand, yet has repeatedly failed to move new generation through its interconnection queue – earning a D- rating  for speed. These delays come as demand is surging, driven in part by rapid data center growth, and as the Trump Administration cuts funding for near-complete clean energy projects. The result: record-high PJM capacity auction prices, leading to billions of dollars in added costs for consumers across the region."

Priorities:

• Improved load forecasting – to remove speculative projects that inflate prices but are unlikely to be built.
• A bifurcated PJM auction – capping prices for existing power plants while allowing new plants to receive higher rates, ensuring reliability without excessive costs.
• Governance changes – to give states and their citizens a stronger voice, including through the new Governors’ Collaborative.