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YOUR ELECTRICITY BILLS ARE GOING UP –

GOVERNOR SHAPIRO IS TRYING TO STOP IT.

PJM Interconnection, the company that manages the electrical grid serving Pennsylvania and several other states in the region, is failing to protect us from higher electricity bills. PJM recently held a power market auction to buy electricity for the future. Prices in that auction hit a record high. It is expected to increase family electricity bills by as much as $25 per month starting later this year

What is PJM Interconnection?

PJM is an obscure but powerful company that runs the electrical grid for Pennsylvania and all or part of a dozen other states stretching from New Jersey all the way to Illinois. PJM coordinates the flow of electricity from energy generators like power plants and solar farms to local utilities across a web of high-voltage transmission lines. It also buys electricity on behalf of utilities to make sure there is enough electricity to meet demand. 

 

Decisions by PJM affect the price and reliability of electricity for 65 million people. Its decision-making is complicated, with little public accountability, and driven largely by power generators, utilities, and other energy corporations. Consumers have little say in decisions.

WHAT'S GONE WRONG?

Governor Shapiro called PJM's flawed energy purchasing strategy, "the largest unjust wealth transfer in U.S. energy markets history," moving over $20 billion from consumers to energy companies.

Prices increase when energy production falls short of demand. While data centers, AI, and crypto mining are driving up electricity needs, these higher costs could have been avoided if PJM had planned better.

1.) PJM's flawed energy purchasing system has artificially inflated

prices paid to ensure sufficient electricity supply. 

 

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2.) PJM's outdated grid connection process has created a massive backlog of new energy projects. They stopped accepting connection requests in 2022. About 95% of the 2,000 waiting projects are renewable energy sources. This bottleneck leaves Pennsylvania relying heavily on gas for about 60% of its electricity, which is costlier and less reliable. Only 3% to 5% comes from cheaper, clean energy sources.

WHAT SHOULD BE DONE?

Governor Shapiro is taking on PJM to protect Pennsylvanians from unfair electricity cost increases through legal action. He's also pushing PJM to streamline its grid connection process for renewable energy projects.

In January 2025, Governor Josh Shapiro successfully negotiated a settlement with PJM Interconnection that will protect Pennsylvania consumers – and consumers in the entire region – from unnecessary electricity costs and save billions of dollars. However, significant work remains to be done, as currently less than 5% of PJM's grid electricity comes from renewable sources like solar and wind. PJM needs to address its substantial backlog of clean energy projects waiting for grid connection approval to create a more balanced and affordable energy portfolio for the region.

Our grid needs better energy balance, incorporating more clean energy and battery storage to capture renewable power when it's most abundant and use it when needed. PJM should expedite project approvals and promote energy efficiency to reduce costs.

WHAT CAN YOU DO?

To keep up on what’s happening with our electric grid and what it could mean for your electric bills, sign up below for updates and action alerts.

NO WINDFALLS FOR THE ENERGY INDUSTRY. MORE SAVINGS FOR ENERGY CONSUMERS.

© 2024 by the Clean Power PA Coalition.

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