The PJM Interconnection’s mission is to ensure the reliability of the high-voltage electric power system serving 67 million people in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.
Tuesday, Pennsylvania Department of Environmental Protection Acting Secretary Jessica Shirley, Rep. Mandy Steele (D-Allegheny), and Keystone Energy Efficiency Alliance joined Evergreen to spotlight the findings of “Tackling the PJM Electricity Cost Crisis,” which outlines the economic benefits for the Mid-Atlantic region if PJM fixes systemic issues with its interconnection queue of new electric generation projects.
The report compares PJM’s current status quo with a reformed scenario in which PJM makes meaningful changes to its project approval process to bring reliable, affordable energy online faster.
In every state modeled, Synapse found clear, significant gains for households, workers, and local economies.
$500 Annual Ratepayer Savings In PA
The modeling projects that reforms to clear PJM’s interconnection queue will drive significant cost-savings and economic growth across the Mid-Atlantic region.
In Pennsylvania, that would result in--
-- $500 in annual average household energy savings.
-- 37,500 additional jobs each year across the Commonwealth.
-- 20% lower electric bills for businesses and industrial customers.
With electricity demand growing rapidly, PJM’s broken interconnection process is stalling the development of new energy projects.
On average, new project approvals take over five years—longer than any other region in the country. This backlog is pushing electricity prices higher, deepening reliance on unreliable and costly fossil fuels, and preventing the grid from adapting to meet future demand.
The recent settlement with Gov. Josh Shapiro, alongside pressure from neighboring governors, makes clear that PJM has the authority to act.
Without reform, consumer costs are projected to increase by 60 percent.
The report analyzes PJM’s existing policies and its failure to bring adequate energy online. It also offers strategic policy recommendations to unclog the queue and get projects online faster.
Key recommendations include:
-- Reviewing requests faster: Set a mandatory 150-day study timeline and pursue study automation.
-- Consider all technologies: Create a level playing field for energy storage and explore alternative transmission solutions.
-- Utilize existing capacity: Allow developers to use interconnection rights of existing or retiring plants.
-- Improve transparency and governance: Make PJM votes public and ensure proper representation for consumers and environmental groups.
“Pennsylvania’s energy landscape is changing quickly, and will continue to change more rapidly in the coming years. We need more electricity on the grid to be able to be ready for data centers, electric vehicles, and home electrification,” said DEP Acting Secretary Jessica Shirley. “Governor Shapiro’s Lightning Plan will bring lower energy costs and clean energy for Pennsylvania, and the Shapiro administration is ready to work with PJM towards a stronger, more affordable energy future.”
“Electric bills are 20% higher than they should be. I see people in my office every day that are struggling with rising costs,” said Rep. Mandy Steele. “We’ve got to help these families. It’s time for PJM to speed up their timeline. We need new energy projects built now.”
"Demand on our grid is growing, and prices are rising. We need a rational, predictable plan of action that accelerates changes in how PJM is managing power in our region and speeds up the waiting line of energy projects that could help us to lessen the sting,” said Jeaneen Zappa, Keystone Energy Efficiency Alliance executive director. “Renters, homeowners, and businesses all want affordable, reliable electricity, and these recommendations can help us to get it."
“The PJM region is at a tipping point: household electricity costs are skyrocketing, and affordable, clean energy is stuck in limbo. But PJM’s broken approval process is a massive barrier to progress. Low-cost wind and solar projects are ready and waiting—what’s missing is action,” said Julia Kortrey, Evergreen Collaborative deputy state policy director. “PJM must stop slow-walking reforms. It’s time for PJM to cut red tape, lower electricity prices, and bring clean energy online to meet growing demand.”
“If PJM doesn’t fix its broken interconnection queue, electricity bills across the region could climb nearly 60 percent by 2040. Our analysis found that reforms to speed up the process to bring new energy projects online could produce real and significant cost reductions for households and businesses alike,” said Pat Knight, Synapse Energy Economics senior principal. “PJM will need near-term action if it is to meet fast-growing demand, especially from data centers, without burdening customers with hefty bill increases.”
Click Here to read the full report. Click Here for Pennsylvania-specific findings.
Click Here for the Evergreen Action announcement.
Related Articles This Week:
-- PUC Releases Agenda For April 24 Hearing On Its Review Of Electric Grid Impacts From Data Center Growth [PaEN]
-- New Report: Fixing PJM’s Broken Electric Generation Approval Process Can Lower Energy Costs, Create Jobs Across The Mid-Atlantic [PaEN]
-- North American Electric Reliability Corp. Files Proposed Cold Weather Standard To Improve Reliability For Natural Gas-fired, Other Electric Generators [PaEN]
-- PUC Commissioners Urge Congressional Action To Preserve $19 Million In Remaining LIHEAP Funds For PA This Year [PaEN]
NewsClips:
-- Utility Dive: NERC Proposes Generator Cold Weather Reliability Standard
-- Utility Dive: Ratepayer Advocates: FERC Should Order PJM To Rerun Last Electricity Capacity Auction; Could Lead To $5 Billion In Consumer Savings
-- Reuters: Canadian Power Producer Capital Power Corp Buys 1,124 MW Hummel Natural Gas Power Plant In Snyder County Amid Growing Data Center Power Demand
-- Reuters: FERC Denies Rehearing On Colocated Amazon Data Center Energy Pact In Luzrne County
-- Energy Association Of PA [Utilities] Calls For Protection Of LIHEAP Low-Income Home Energy Assistance Program
-- Observer-Reporter Guest Essay: Shapiro’s Energy Policies Will Cause Us To Pay More - By Sen. Camera Bartolotta (R-Washington) [PJM Policies-Data Center Growth Taking Power Away From Public-Natural Gas Prices Are Real Problem - Get The Real Story Here ]
-- Bloomberg: US Propane Market Collapses Due To Trade War With China
-- Reuters: US Natural Gas Prices Drop 6% To 9-Week Low On Record Output, Lower Demand
-- E&ENews/Politico: President’s Push For More LNG Gas Exports Risks Domestic Price Surge
-- Financial Times: Growth In Oil Demand Expected To Slow Sharply As A Result Of Presidents Tariffs
-- The Guardian: President’s Tariffs Will Mean World Uses Less Oil This Year, IEA Says
Resource Links - PA Data Centers:
-- PUC Launches Review Of Electric Grid Impacts From Data Center Growth, Sets April 24 Hearing [PaEN]
-- PUC House Budget Hearing: We Aren’t Going To Build Our Way Out Of Electric Generation Shortfalls On PJM Grid; We Need To Diversify Our Generation Sources [PaEN]
-- PUC Invites Stakeholder Comments On The Issue Of The Adequacy Of Electricity Supplies In Pennsylvania [Background On Issue] [PaEN]
-- 30 Stakeholder Comments Received By PUC On Adequacy Of Electricity Supplies In Pennsylvania; Increasing Natural Gas Power Plant Reliability To 90-95% Would Mean No Imminent Capacity Problem [PaEN]
-- Guest Essay: Significant Electricity Load Growth Can Be Accommodated Without A Stampede To New Natural Gas Generation Just By Increasing Efficiency At Existing Power Plants [PaEN]
-- Gov. Shapiro Launches Legislative Push for 'Lightning Plan’ To Build More Energy Projects, Speed Up Permitting, Lower Costs, Create Jobs For Pennsylvanians [PaEN]
-- Bloomberg: President’s Tariffs Herald Higher Costs For A.I. Boom; New Measure Hit Power Industry Already Struggling To Procure Vital Equipment
-- Pennsylvania’s Electric Grid Is Dependent On One Fuel To Generate 59% Of Our Electricity; Market Moving To Renewables + Storage [PaEN]
-- Utility Dive: US DOE Offers 2 National Energy Technology Laboratory Sites In Pittsburgh For Colocating Data Centers, Related Power Plants [PaEN]
-- Liberty Energy, Range Resources Announce Support For Developing A Natural Gas Data Center Power Plant In Robinson Twp., Washington County [PaEN]
-- Wall Street Journal: Homer City Coal Power Plant Was Just Imploded To Make Way For An A.I. Data Center, The Country’s Largest Natural Gas Power Plant [PDF of Article]
-- TECfusions Unveils Massive 1,400-Acre Data Center Project With 3 Gigawatts Of Natural Gas-Fired Power Generation In Westmoreland County [PaEN]
-- DEP Issues Air Quality Permit For Nova Energy LLC Cryptocurrency Data Center In Venango County [PaEN]
-- DEP Invites Comments On Air Permit For Kratos Cryptocurrency Mining Facility Powered By Natural Gas In Clinton County [PaEN]
-- PJM Interconnection Reliability Initiative Attracts 94 Applications For 26.6 GW Of New Electric Generation Capacity; Reviews To Be Completed By 2026; List Of Projects Not Available Now [PaEN]
-- PJM Interconnection Supports Presidential Exemptions From Clean Air Act Standards Requested By 13,900 MW Of Electric Generation In PJM Region, Including Keystone And Conemaugh Power Plants In PA [PaEN]
-- PJM, Google & Tapestry Join Forces To Apply A.I. To Enhance Regional Planning, Generation Interconnection [PaEN]
-- President Signs Executive Orders Directing US Attorney General To Take Action Against States Impeding Domestic Energy Production; Rescinds Policies Transition Away From Coal; Lifts Toxics Standards For Coal Power Plants [PaEN]
-- President Signs Executive Orders Directing US Attorney General To Take Action Against States Impeding Domestic Energy Production; Rescinds Policies Transition Away From Coal; Lifts Toxics Standards For Coal Power Plants [PaEN]
Resource Links - PJM Issues:
-- Gov. Shapiro Reaches Agreement With PJM To Prevent Unnecessary Price Hikes And Save Consumers Over $21 Billion On Utility Bills [PaEN]
-- PA Senate Republican Leader: ‘Every Consumer Of Electricity In This Commonwealth Is Going To Pay More;’ ‘What You’re Going To Face Is Going To Be Really Unpleasant’ [PaEN]
-- Gov. Shapiro Threatens To Pull Pennsylvania Out Of PJM If It Does Not Protect Consumers Against Soaring Power Prices [PaEN]
-- Gov. Shapiro, Joins 4 Other Governors To Call On PJM To Reform Its Electric Generating Capacity Auction Rules To Prevent Billions Of Dollars In 'Unnecessary’ Costs To Their Residents, Businesses [PaEN]
-- PJM Electricity Auction Price 9 Times Higher Than Previous Auction-- $269.92/MW-Day For 2025/26 Delivery Compared To $28.92/MW-Day In 2024-25; Extreme Weather Risk Big Factor [PaEN]
-- PennFuture: Dramatic PJM Electricity Price Increases Due To Forced Outages Of Gas Power Plants; Huge Backlog Of New Generation Projects; Demand Growth Driven By Data Centers, Cryptocurrency Mining [PaEN]
-- Kleinman Center For Energy Policy: The High Price Of Failing To Transition To Clean Energy In PJM Footprint; Next PJM Auction Is In December [PaEN]
-- PJM, Electric Grid Operators Recommend Additional Steps To Overcome Vulnerabilities In Natural Gas Infrastructure To Ensure More Reliable Grid Operation [PaEN]
-- FERC Approves PJM $1.25 Billion Winter Storm Elliot Settlement With Non-Performing Natural Gas, Other Electricity Generators [PaEN]
-- PJM Reports Natural Gas Power Plants Were Over Half The Forced Outages During Winter Storm Gerri In January; Special Procedures Used For Gas Generators Raised Questions About Market Impacts [PaEN]
[Posted: April 15, 2025] PA Environment Digest
