Harrisburg, PA – Today, after Governor Josh Shapiro hosted the first-ever gathering of all 13 states served by PJM Interconnection in Philadelphia earlier this week, governors from the PJM states announced the launch of the PJM Governors Collaborative, a new bipartisan forum that will allow governors across PJM’s 13 states to act collectively on issues of grid governance, energy affordability, and market reform. The Collaborative will ensure that elected leaders representing the 67 million people PJM serves have a greater voice in decisions that affect household energy bills and grid reliability.
In launching the Collaborative, the governors signed a joint statement of intent “to promote greater state and consumer representation in the governance and decision-making processes of PJM Interconnection, in order to ensure the provision of affordable, safe, and reliable electricity for their residents and businesses.”
At the historic summit this week in Philadelphia, more than 450 stakeholders from across PJM gathered in Philadelphia gathered to address rising energy costs, grid reliability, and PJM’s governance issues.
Governor Shapiro, who has consistently pushed PJM to reform its processes and lower consumer costs, opened the Summit by warning that if PJM fails to act decisively, Pennsylvania and other states may be forced to consider alternatives to the current PJM grid. Governor Glenn Youngkin of Virginia, Governor Wes Moore of Maryland, and Governor Phil Murphy of New Jersey also addressed the Summit, advocating for real reform to PJM’s governance structure and markets.
“For nearly a century, Pennsylvanians have trusted PJM to keep the lights on,” said Pennsylvania Governor Josh Shapiro. “But PJM has been too slow to bring new generation online and too quick to saddle families with higher bills. It’s not working anymore – and it’s time to get serious about reform. If PJM won’t move fast enough, Pennsylvania and our partner states are prepared to chart a new course in the interest of hard-working families we represent. The PJM Governors’ Collaborative will create a forum for the states to discuss the issues most impacting consumers and put forth a united voice when navigating these critical discussions.”
“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 Delaware Governor Matt 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."
"For far too long, PJM has made decisions with minimal input from the states, leaving families and businesses to bear skyrocketing energy costs and rising reliability risks," said Illinois Governor JB Pritzker. "I’m proud to join this bipartisan collective to ensure states have a meaningful voice in shaping the region’s energy future. Together, we’re sending a clear message that PJM must prioritize affordability, reliability, and accountability for the people it serves."
“As Maryland families see double-digit rate increases and Maryland businesses see the ability to compete threatened by rising energy expenses, we are calling for increased transparency and accountability to improve the grid and lower costs for our citizens,” said Maryland Governor Wes Moore. “I am proud to stand with my fellow governors and we will continue in this fight for a grid that is safe, reliable, and affordable.”
“We must build a system that works better and more transparently for the millions of people in the region that PJM serves,” said New Jersey Governor Phil Murphy. “I’m glad to see our regional states coming together across party lines to demand better. This week’s historic conference and this collaborative effort will continue to strengthen our engagement on this issue as the PJM states unite in our push for reforms to deliver affordable electricity.”
"Virginia’s growth has led to the fastest expansion in energy demand since WWII,” said Virginia Governor Glenn Youngkin. “Unfortunately, rather than providing energy and power strategies that deliver for Virginia’s needs by unlocking investment and fast-tracking critical projects, PJM has instead been responsible for bottlenecks and delays that crush jobs, drive up utility bills, and leave families and businesses hurting. We cannot afford a grid operator that is slow to adapt and blind to the realities of surging demand, and we won’t sit back and accept a system that puts bureaucratic process over results. That’s why I’m joining governors of other PJM states to launch the PJM Governors Collaborative. Together, we are demanding real reforms from PJM that put consumers first, accelerate new generation, and restore confidence in the future of our grid."
Governors Unite to Demand Change
PJM governors are joining together to raise concerns about the grid management organization’s reactive approach that have driven energy costs higher for families and businesses across the 13-state region. Together, the governors are taking action to ensure states have a stronger voice in PJM’s governance and decision-making.
The governors underscored that while PJM is the nation’s largest grid operator, serving 67 million people, it also has the fewest avenues for states and consumers to influence outcomes that directly affect energy bills. They emphasized that states deserve a seat at the table to ensure PJM reforms its governance structure, speeds up interconnection of new energy projects, and prevents future price spikes.
Energy leaders have also been direct about the need to reform PJM’s markets — a message echoed throughout the Summit as states, regulators, and utilities alike called for accountability and faster action.
Over the last decade, 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.
Collaborative will Push Forward Ideas for Real Reform
The Summit also served as a launching pad for three major reforms, which will be the subject of future discussions among the PJM Governors Collaborative:
- 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.
The PJM Governors’ Collaborative will continue meeting after this week’s Summit to develop and advance shared proposals for reform.
Governor Shapiro’s Track Record of Delivering Results
Since taking office, Governor Shapiro has consistently fought to hold PJM accountable:
- Created a fast-track Reliability Resource Initiative (RRI) to allow quicker interconnection of key projects. This will result in 9.3 GW of baseload power (mostly gas) to be built across the region in the next seven years.
- Included the Crane Clean Energy Center in RRI, allowing it to enter service years sooner than would otherwise have been possible. This will add 3,400 jobs to Dauphin County and bring 835 MW of clean, reliable power to the grid.
- Entered into a settlement with Pennsylvania following the 206 complaint that lowered the maximum price of its capacity auction for two years, likely saving consumers more than $16 billion.
- Accepted the Governor’s proposal to begin planning for a sub-annual capacity market, which is expected to save consumers billions of dollars over time.
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.
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