Governors Demand PJM Address Record-High Power Costs

Five governors urge PJM Interconnection to reform pricing after auction results threaten billions in extra costs for consumers.

Democratic governors from Delaware, Illinois, Pennsylvania, Maryland, and New Jersey have called for urgent action from PJM Interconnection following a significant increase in power plant prices.
The recent PJM capacity auction resulted in prices nearly 10 times higher than the previous year, attributed to shrinking supply and rising demand.
The governors' letter highlights a potential $14.7 billion cost increase for consumers across 13 states and D.C., urging PJM to expand power plant inclusion, promote renewables, and lower the capacity price cap.
Environmental groups have filed complaints against PJM's pricing process, prompting the grid operator to request a six-month delay for its 2026/27 auction.
PJM has warned that policy shifts from fossil fuels to clean energy without adequate new generation could lead to supply shortages, affecting prices.