Governor Josh Shapiro announced a major agreement with PJM Interconnection that will save consumers over $21 billion in energy costs over the next two years, reports Ryan Genova for Glenside Local.
Audubon’s PJM, the power grid manager supplying Pennsylvania, agreed to cap certain price hikes, preventing an excessive cost increase from its capacity auction set for July 2025. Initially, the price cap was over $500/MW-Day. Under this agreement, it will be reduced to $325/MW-Day, avoiding billions in unnecessary costs for 65 million people.
PJM operates a capacity market where energy providers commit to future energy supply. Rising demand and delays in adding new power sources have caused PJM’s capacity prices to soar, with the 2025/26 auction reaching $14.7 billion – an 800 percent increase from the prior year.
PJM and the Shapiro Administration have agreed to a plan subject to consultation with PJM members and the Board. To prevent auction delays, PJM will seek a FERC order to implement a cap and floor mechanism
“PJM did the right thing by listening to my concerns and coming to the table to find a path forward that will save Pennsylvanians billions of dollars on their electricity bills,” the Governor from Abington said.
Read more about Governor Josh Shapiro and his deal with PJM Interconnection in Glenside Local.
