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White House, Governors Press PJM for Emergency Auction to Make Tech Fund New Power

The proposal targets bill increases tied to AI data centers through temporary wholesale caps with costs shifted toward large operators.

Overview

  • Administration officials and a bipartisan group of governors are set to unveil a statement urging PJM to run a special reliability auction that compels major tech firms to secure long‑term contracts for new generation.
  • The plan under discussion includes two‑year limits on wholesale price increases in PJM markets to shield consumers from rising electricity costs.
  • PJM says it was not invited to the White House event and will not attend, highlighting uncertainty about how and whether the proposal would be implemented.
  • Officials have indicated the auction could support roughly $15 billion in new power plants if PJM adopts the approach.
  • The guiding principles also call for faster interconnection of projects and use of PJM’s reliability backstop to create a separate procurement path for new generation, with Pennsylvania Gov. Josh Shapiro tying his participation to stronger consumer protections.