Harrisburg, PA – Today, Governor Josh Shapiro will convene representatives of all 13 PJM governors and key stakeholders from across the 13 state region served by the PJM electrical grid to discuss the critical changes that PJM must make to keep energy costs low, bring new electricity onto the grid quickly, and meet the needs of 65 million Americans at the Summit of the State of PJM Interconnection.
Governor Shapiro has been outspoken on PJM’s need to meet the moment and grow with the pace of business as energy innovation has rapidly expanded, which is why he is bringing together a broad coalition for this historic summit to discuss solutions and help chart a new course for the grid operator.
PJM has two major shortcomings that have reduced economic development, cost Pennsylvania jobs, and increased energy prices for Pennsylvanians:
- PJM’s interconnection queue remains one of the slowest in the nation, earning a D-rating from third-party analysts, meaning projects cannot come online.
- PJM has continued to delay its auctions over the last five years, meaning there is no time for any new generation that does make it through the queue to join the grid in time for the relevant forthcoming auction.
As a direct result of these two major flaws, the July 2024 auction price was $14.7 billion, and the July 2025 auction cost consumers $16.1 billion — significantly more than the previous $2-3 billion average — meaning Pennsylvanians may see a 10-15 percent increase to their electric bills. The cost of the auction would have been billions of dollars higher had Governor Shapiro not stepped in and negotiated a settlement with PJM which capped costs in the two auctions being held in 2025.
However, once the Governor’s caps expire next year, the June 2026 auction has the potential to be the most expensive ever, with up to $40 billion in costs in a single auction, which could also threaten the reliability of the grid.
Not only do PJM states have zero representation on PJM’s 1,000-member governance structure, but unlike other regions in the country, states do not have formal power to affect decisions made by the grid operator — states can only informally advise PJM or file comments once PJM has acted, which has led to inaction and crisis-driven decision-making.
Energy leaders have also been clear and direct about the need to reform PJM’s governance and markets:
Former FERC Chairman Mark Christie: “When you’re on a commission like this, when you’re on the Virginia commission, when what you do affects what people have to pay in their monthly bills — and God knows we have millions of people struggling to pay their bills these days.” … “When it affects whether their lights are going to stay on, you have to remember those people who are not in the room.”
Jon Gordon, policy director at Advanced Energy United: “You have a massive technical problem, which is the challenge to fix this broken interconnection queue and bring new resources online in a time of global uncertainty with tariffs, inflation, and supply chain issues that are slowing the construction and development of new generation resources.”
Clara Summers, campaign manager for the Citizens Utility Board, an Illinois-based utility customer watchdog group: “The market can’t work until the interconnection queue delay is fixed.”
Abe Silverman, an attorney, energy consultant, and research scholar at Johns Hopkins University:“Prices are increasing right now because we don’t have enough supply. We really have choked off that next generation of projects that should be coming in and taking those positions in the market.”
John Howat, senior energy analyst for the National Consumer Law Center: “With so much growth on the horizon right now, I’m sure [utilities are] seeing dollar signs, and maybe that’s their job. But that’s not necessarily in the public interest.”
Tyson Slocum, director of the energy program at Public Citizen: “There are no easy fixes here. But I think it’s important for state regulators and state lawmakers to explore all options on the table for how to keep the lights on in a reliable and affordable way.”
Calvin Butler, CEO of Exelon: “Despite higher prices, we are not seeing the market respond fast enough,” said Calvin Butler, CEO of Exelon, in a July 31 conference call. His company owns utilities across PJM, including ComEd in Illinois, PECO in Pennsylvania, BGE in Maryland and Atlantic City Electric in New Jersey. “States have an opportunity to proactively bring control, certainty and cost benefits by pursuing options outside of the capacity market, including regulated generation.”
Charles Harper, senior policy lead for the power sector at Evergreen Collaborative: “Folks probably don’t know much about PJM or what this organization is doing behind the scenes, but it’s about to hit their pocketbooks…That status quo of approving projects slowly is no longer tenable, because it’s starting to lead to massive cost increases.”
Maryland Energy Secretary Paul Pinsky: “For too long, PJM has caved to the interests of fossil fuel generators and utilities that profit from high electricity prices and scarce new generation. That’s, in my opinion, why PJM has slow-walked reforms that would lower prices.”
Pennsylvania has a long legacy as an energy leader and the Summit is a demonstration of Governor Shapiro’s commitment to Pennsylvanians to create energy jobs, lower costs for consumers, and ensure the Commonwealth continues to be a national energy leader for decades to come.