Governors Create PJM Governors' Collaborative to Press for Lower Capacity Costs

Overview

• A memorandum of understanding signed by governors from Delaware, Illinois, Indiana, Maryland, Michigan, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, New Jersey and the mayor of Washington, D.C. formally established the PJM Governors' Collaborative.
• The group says it will coordinate state policy, procurement and planning to seek a stronger role in PJM decision-making and to reduce sharply rising capacity-market costs for ratepayers.
• Governors highlighted that capacity-market prices have climbed dramatically since 2023 and warned that fast growth in data center demand and gaps in transmission planning threaten near-term reliability.
• Private-sector action followed the summit with Google and Constellation announcing a $4.3 billion program to expand nuclear output at 11 Illinois sites that is projected to add about 890 megawatts to the PJM grid.
• State proposals and federal engagement remain active responses to the stress on PJM, including Illinois’ POWER Act to require new data centers to bring new generation and FERC‑PJM operational recommendations intended to reduce shortfall risk.