Harrisburg, PA — Today, Governor Josh Shapiro announced that PJM Interconnection will extend its existing price cap for another two years — until 2030 — a major win for consumers following the Governor’s legal action and efforts to stop billions in unnecessary electricity rate hikes.
The extension of the price cap — a $325/MW-day circuit breaker on PJM’s market — will save 67 million Americans across the PJM region an additional $27 billion on their energy bills. Combined with prior savings secured through the Governor’s lawsuit and settlement, Governor Shapiro’s actions have now saved PJM customers a total of $45 billion. That means about $575 back in the pockets of every household in Pennsylvania over the next four years.
“After we led a lawsuit and took PJM to court last year to protect consumers, we just secured another major win — PJM announced they’re extending the success of our price cap for the next two years,” said Governor Shapiro. “This is going to save 67 million Americans $27 billion on their energy bills — bringing the total we’ve saved PJM customers up to $45 billion. Pennsylvanians can’t afford higher prices, and I will always stand up for them against companies trying to jack up their prices and screw them over.”
A Proven Record of Standing Up for Consumers
For years, Governor Shapiro has led the fight to stop rising electricity costs from being passed on to consumers and to get more power onto the grid faster.
Throughout 2024, the Governor repeatedly urged PJM to modernize its rules, cut red tape, speed up its stalled interconnection queue, reform its capacity market, and improve reliability during extreme weather. When PJM continued to delay new generation while driving up prices, Governor Shapiro escalated his efforts.
In December 2024, the Governor sued PJM, warning that its flawed auction design would saddle consumers with billions in unnecessary costs. That lawsuit led to a landmark settlement in January 2025 — later approved by the Federal Energy Regulatory Commission — that significantly lowered PJM’s capacity price cap.
The results were immediate. PJM’s July 2025 auction under the new rules reduced costs by $8.3 billion compared to what consumers would have paid without the Governor’s intervention. A second auction in December 2025 averted another unprecedented spike in energy prices, saving consumers $9.9 billion.
After all 13 PJM governors and the federal government issued a historic Statement of Principles in January 2026 calling for affordability, reliability, and meaningful market reform, momentum continued to build.
Today’s announcement builds on that progress and locks in additional savings until 2030.
Building Lasting Reform Across the PJM Region
Governor Shapiro has also worked to deliver long-term structural reforms to PJM.
In September 2025, he convened all 13 PJM governors in Philadelphia for the first-ever Summit on the State of PJM Interconnection, bringing together governors, regulators, consumer advocates, and industry leaders. That effort led to the creation of the PJM Governors Collaborative — the first formal bipartisan forum ensuring governors representing more than 67 million people have a collective voice in PJM decisions that affect household energy bills and grid reliability. Governor Shapiro continues to push PJM to provide long-term support for new energy projects, make sure that data centers pay their fair share, and speed up PJM’s stalled interconnection queue.
The Governor has also taken action at home to strengthen oversight and protect ratepayers. In November 2025, he signed Electricity Load Forecast Accountability provisions into law, giving the Pennsylvania Public Utility Commission new authority to review and validate the load forecasts utilities submit to PJM. The reforms increase transparency, prevent double-counting of new large energy users like data centers, and protect consumers from price hikes driven by inaccurate projections. Governor Shapiro is also working to prevent utility companies from jacking up rates and earning excessive profits.
Pairing Reform with Energy Growth in Pennsylvania
Governor Shapiro has made clear that protecting consumers and building new energy supply must go hand in hand.
Through his Lightning Plan and the PA Permit Fast Track Program, the Governor is cutting permitting delays, accelerating responsible energy development, and positioning Pennsylvania — the nation’s second-largest energy producer and exporter — to build more power faster while keeping costs down.
Independent analyses confirm these efforts will save consumers money, create jobs, and attract billions in new energy investment.
With today’s extension of the PJM price cap, Governor Shapiro continues to deliver on his commitment to stand up for Pennsylvania families and businesses — ensuring reliable, affordable energy while holding powerful interests accountable.
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