The Statement of Principles builds on years of leadership by Governor Shapiro, who has been advocating for reforms to PJM since early in his term, took legal action when PJM failed to act, and secured real consumer protections that are now shaping the national response.
The group of bipartisan officials is pushing PJM to adopt rules that would get more power on the grid as quickly as possible — without passing new costs onto consumers who are already struggling with higher grocery, housing, and energy bills.
The principles provide consumers critical protection by extending for two more years the price cap that Governor Shapiro won after he sued PJM in 2024 to stop unjustified price hikes.
The Governor made clear that his involvement was contingent on extending the price cap he negotiated following his lawsuit — ensuring consumer protections remained at the center of all discussions.
If implemented as proposed, the extended price cap would save more than 67 million consumers — including 13 million Pennsylvanians — within the PJM region approximately $27 billion over the next two years with $5 billion in Pennsylvania alone.
These savings would be in addition to $18.2 billion already saved as a direct result of Governor Shapiro’s 2024 lawsuit.
Secretary Wright, Secretary Burgum, Virginia Governor Glenn Youngkin, Maryland Governor Wes Moore, and Ohio Governor Mike DeWine signed the Statement of Principles at the event.
In total, all 13 governors from PJM states have signed onto the Principles, underscoring broad bipartisan support for extending the price cap and advancing PJM reform.
“For two years, I’ve been sounding the alarm, explaining that without fundamental changes to PJM — Pennsylvanians were going to be paying more and more, and getting nothing in return,” said Governor Shapiro. “I sued PJM when they refused to act and secured a price cap that saved consumers tens of billions of dollars on their energy bills.
“Since then I’ve been working with my fellow governors and federal energy officials to push PJM to make needed reforms, and I’m glad the White House is following Pennsylvania’s lead and adopting the solutions we’ve been pushing for — including the extension of the price cap that I insisted be included today.
“In Pennsylvania, we’ve been focused on creating more energy, permitting faster, and protecting consumers — we’re showing what’s possible when government leads the way and gets stuff done.”
The agreement comes as the PJM Board is considering revised rules for the upcoming 2028-29 Capacity Auction, to be held in June.
Governor Shapiro called on the PJM Board to immediately adopt the Statement of Principles for the upcoming auction to ensure that consumers are protected from further energy price spikes.
The Statement of Principles being advanced would require PJM to:
-- Trigger a special “backstop” capacity auction offering generators up to 15-year commitments to accelerate the construction of new power plants
-- Allocate the cost of those long-term contracts to data centers and new large users that have not brought their own power — instead of shifting those costs onto households and small businesses
-- Significantly accelerate PJM’s interconnection process, including a firm 150-day deadline and expedited treatment for shovel-ready projects
-- Launch a new PJM process to deliver long-term market reforms while extending Governor Shapiro’s negotiated price cap for the next two auctions
Together, these reforms are designed to lower costs, strengthen reliability, and finally fix PJM’s broken process — allowing economic growth and data center development to continue without burdening ratepayers, Gov. Shapiro said.
Even before today, Pennsylvania was leading the nation on energy. The Commonwealth is the second-largest energy producer in the country and the second-largest net exporter of energy, behind only Texas.
Under Governor Shapiro’s leadership, Pennsylvania is producing more energy than ever before — including restarting operations at Unit 1 on Three Mile Island, converting former coal-fired power plants into modern natural gas facilities, and adding approximately five gigawatts of new generation to the regional grid.
At the same time, Governor Shapiro has prioritized making government move faster.
Through his Lightning Energy Plan, the Governor is working with the General Assembly to streamline permitting, cut red tape, and connect new energy projects to the grid more quickly — a model that complements and reinforces the PJM reforms being advanced today.
Click Here for the Governor's Remarks.
Click Here for the Governor's announcement.
US DOE/Interior Comments
U.S. Secretary of Energy Chris Wright and Secretary of the Interior Doug Burgum, vice-chair and chair of the National Energy Dominance Council respectively, had these comments on the Statement of Principles they said would help “build big power plants again”--
“High electricity prices are a choice,” said Energy Secretary Chris Wright. “The Biden administration’s forceful closures of coal and natural gas plants without reliable replacements left the United States in an energy emergency. Perhaps no region in America is more at risk than in PJM.
“That’s why President Trump asked governors across the Mid-Atlantic to come together and call upon PJM to allow America to build big reliable power plants again.
“Our directives will restore affordable and reliable electricity so American families thrive and America’s manufacturing industries once again boom. President Trump promised to unleash American energy and put the American people first. This plan keeps that promise."
"For too long, the Green New Scam has left Mid-Atlantic families in the dark with skyrocketing bills,” said Interior Secretary Doug Burgum. “Today, under President Trump's leadership, the National Energy Dominance Council has come up with a solution to end these high costs, roll back the Biden administration’s policies of energy scarcity, and ensure we are powering the Mid-Atlantic and part of the Midwest’s future without charging its citizens a cent.
“This initiative will ensure we usher in the age of artificial intelligence with new power plants funded by the technology companies, not taxpayers, securing the steel of Pennsylvania, the manufacturing of Ohio, and the ships of Virginia. The Trump administration is keeping the lights on, the factories humming, and the American Dream affordable."
Click Here for the DOE/Interior announcement.
Fact Sheet: President’s Administration Outlines Plan To Build Big Power Plants Again
Reaction
Claire Lang-Ree, Natural Resources Defense Council’s advocate for the Sustainable FERC Project, issued this statement--
“This announcement represents rare bipartisanship – governors from PJM states have united to protect the 67 million Americans in PJM from skyrocketing energy bills and the risk of blackouts due to the rapid pace of new data centers and fossil fuel un-reliability.
“Rightfully, there is a recognition that the time to act is now, but two key elements are missing in addressing costs and reliability.
“PJM needs to require that data centers bring their own new power supply or otherwise face interruptions when there’s not enough power to go around.
“It also needs to make sure that new power plants for data centers don't get to cut in line in front of power plants that are trying to connect to bring down prices.
“Everyday people can’t afford to pay the price and bear the risks of data center growth, and we need solutions that will actually deliver on that promise.
“If the Trump administration wants to secure ‘energy dominance,’ it needs to clear the way for the power sources that are the cheapest and fastest to build.
“That means reversing course, ending its cynical attacks on solar and wind power, and helping to get those projects built and connected as soon as possible. Propping up old, dirty energy sources makes no sense.”
NewsClips:
-- AP: How The White House And Governors Want To Fix A.I.- Drive Power Shortages, Price Spikes
-- Reuters: White House Seeks Emergency Power Auction For Largest US Electric Grid [PJM]
-- Bloomberg: President Says He’ll Make Tech Firms Pay For Power; Calls For Emergency Electricity Auction In PJM
Related Articles This Week:
-- House Energy Committee To Consider Bill Giving PUC More Authority To Regulate A.I. Data Centers Jan. 26; Hearings On Related Bills Jan. 26 and Feb. 2 [PaEN]
-- Utility Dive: PJM Updates 20-Year Forecast Of Electricity Demand Growth, Reducing Short Term Growth Estimates By Up To 2.6%, Increasing 2035 Estimate By 3.3% [PaEN]
-- PJM Interconnection: 2025 Year In Review Part III: Planning Prepares For Burgeoning A.I. Data Center Electricity Demand [PaEN]
-- PJM Interconnection Issues Cold Weather Alerts For Jan. 19 - Western Region; Jan. 20 Entire Regional Electric Grid [PaEN]
-- Cameron County Chamber Of Commerce To Install Solar Energy Installation At The Artisan & Economic Innovation CenterTo Offset 100% Of Energy Consumption [PaEN]
-- Pennsylvania Solar Center: Jan. 23 Webinar On State Solar For Schools Grants & Free GET Solar Schools Technical Assistance [PaEN]
-- PA Leads The Nation In Constructing Federally Funded Electric Vehicle Charging Stations With 28 Now Open; Deadline For New Applications Jan. 30 [PaEN]
-- Center For Rural Pennsylvania: Number Of Electric Vehicles, EV Charging Stations Per County ]
NewsClips:
-- City & State PA Guest Essay: Your Energy Bill Keeps Rising, Here’s What We Can Do About It - By Rep. Elizabeth Fiedler (D-Philadelphia), Majority Chair, House Energy Committee
-- PennLive Guest Essay: PA Ratepayers Shouldn’t Be Subsidizing Power Lines For Maryland, DC - By Sen. Kristin Phillips-Hill
-- Marcellus Drilling News: US EIA Predicts Price Of Natural Gas To Dip 2% In 2026, Increase 33% In 2027 Driven By LNG Gas Exports [PDF of Article]
-- Marcellus Drilling News: Expand Energy CEO: Natural Gas Drillers Won’t Add New Production At $3.50 Gas Price-- $4.00 to $4.50 Is Needed To ‘Activate Supply Growth’ [PDF of Article]
-- Spotlight PA: Many PA Residents Don’t Want A.I. Data Centers In Their Communities; PA State Leaders Are Welcoming Them
-- Wilkes-Barre Times-Leader: Dallas Twp. , Luzerne County Residents Fill Public Hearing Space In Support Of A.I. Data Center Zoning Ordinance Limiting Centers To Industrial Zones
-- Scranton Times: Dozens Of Residents Pack Ransom Twp. Meeting To Oppose A.I. Data Center In Lackawanna County [PDF of Article]
-- Scranton Times - Chris Kelly Opinion: A.I. Data Centers Call For Hawks, Not Canaries [PDF of Article]
-- Scranton Times - Chris Kelly Opinion: DEP Hearing Exposes Gravity Of The ‘Comically Speculative Nature’ Of A.I. Data Center Development [PDF of Article]
-- Capital & Main - Audrey Carleton: Will Homer City, An Old Pennsylvania Coal Town, Get A Reboot From 3,200 Acre A.I. Data Center Campus?
-- AP: Microsoft Pushes Big Tech To ‘Pay Our Way’ For A.I. Data Centers Amid Rising Opposition [PA Highlighted]
-- Talen Energy Buys 3 Natural Gas Power Plants In Ohio, Indiana To Service Growing Data Center Demand
-- Wall Street Journal: America’s Biggest Power Grid Operator [PJM] Has An A.I. Program - Too Many Data Centers Threaten To Max Out Generation Capacity, Rate Increases Anger Consumers [PDF of Article]
-- YaleEnvironment360: US LNG Gas Exports Are Pushing Energy Bills Higher, Report Finds
-- Public News Service: Clean Energy Boom Adding Much-Needed Electric Generating Capacity To Grid In PA Threatened As Federal Funding Stalls
-- Post-Gazette - Anya Litvak: EOS Energy Storage Company Calls A.I. Data Centers An ‘Accelerant’ For Company’s Batteries
-- Utility Dive: US Senate Bill Would Exempt Fully Isolated A.I. Data Centers, Other Large Loads From FERC, DOE Regulation
-- AP: US Carbon Pollution Rose In 2025, Experts Blame Cold Weather, High Natural Gas Prices, Data Centers
-- TribLive: Dina Powell McCormick, Wife Of PA US Sen. Dave McCormick, Named Meta [Facebook] President
-- Post-Gazette: Sen. McCormick Says He Will Recuse Himself From Issues Specific To Facebook/Meta With His Wife’s New Role As Meta President
[Posted: January 16, 2026] PA Environment Digest
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