Governor Josh Shapiro recently signed a Statement of Principles alongside a bipartisan group of governors, U.S. Secretary of Energy Chris Wright, and U.S. Secretary of the Interior Doug Burgum outlining a coordinated plan to make significant changes to how the PJM grid is managed.
The Statement of Principles includes two major proposals:
- Requiring large tech companies to shoulder a greater share of electricity costs; and
- Preserving a capacity price cap in future PJM auctions.
The Statement of Principles is nonbinding and requires approval from the Federal Energy Regulatory Commission (FERC) before implementation.
In a press release, the Governor’s Office stated that the extended price cap would save more than 67 million consumers within the PJM region — including 13 million Pennsylvanians — an estimated $27 billion over the next two years, with $5 billion in savings projected for Pennsylvania.
At the same time, PJM’s Board outlined a major set of actions planned for 2026 to integrate large new loads, such as data centers, without compromising reliability or affordability. PJM described these actions as complementing the Statement of Principles. The actions include:
- Improved load forecasting with increased involvement from states.
- An accelerated interconnection process for state‑sponsored generation projects to bring new power online more quickly.
- Immediate initiation of a backstop procurement process to address urgent short‑term reliability needs.
- A review of PJM market structures to ensure new generation investment moves forward.
The PA Chamber supports solutions that expand generation capacity, modernize energy planning, protect consumers, and ensure that companies creating new demand contribute to system costs. PJM’s strategy represents a significant step forward. When paired with the proposals in the Statement of Principles, it provides Pennsylvania with a clearer path to maintain reliability, affordability, and economic growth.
The PA Chamber looks forward to continued collaboration with PJM and policymakers to ensure reliable power, affordable rates, and sustained economic growth throughout the Commonwealth.