Overview

• Governors from more than a quarter of U.S. states convened in Philadelphia to launch the PJM Governors' Collaborative to press for a formal state role in PJM decision-making.
• Pennsylvania Gov. Josh Shapiro warned he could initiate steps to withdraw the state's utilities from PJM if reforms stall, a shift experts say would be complex with uncertain consumer benefits.
• Capacity-market payments in PJM have surged about 1,000% over the past two auctions, pushing up bills as data center growth tied to AI outpaces the addition of new power supplies.
• PJM is run by a board and voting members that include transmission owners and power plant operators, leaving states without a formal vote in governance.
• Shapiro previously secured a price cap and floor on the latest capacity auction, and governors are now seeking market changes, faster interconnections, and greater transparency to protect consumers.