Earlier this week, Governor Josh Shapiro joined other fellow governors in a bi-partisan message saying that PJM Interconnection needs to make some meaningful reforms soon or they will pull out of the multi-state power grid.
Shapiro said in his message at a conference in Philadelphia that PJM’s delays in approving new energy sources to connect to the grid have driven up costs. Capacity auctions, where the grid operator pays power generators to commit to future energy production during times of peak demand, reached record-high prices in the last two years. After filing a complaint last year, Shapiro negotiated a price cap on this year’s auction.
Shapiro did not mention the specific reforms he would want to see, from the grid operator, but called for states to have an increased role in the governance of PJM, a faster process for new sources of energy to connect to the grid and more affordable electricity.
States themselves could not just leave PJM as they are not members of the regional transmission organization, but the state could direct utilities that own transmission lines in the state to exit the group, either through legislation or through the Public Utility Commission.
Others who gave similar messages at the conference included New Jersey Governor Phil Murphy, Maryland Governor Wes Moore, and Virginia Governor Glenn Youngkin.
