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More Than One Way To Save Energy Costs

We can’t criticize Gov. Josh Shapiro for filing a complaint with the Federal Energy Regulatory Commission against PJM Interconnection.

Pennsylvania residents can’t afford the possibility of $20 billion more in electricity costs if PJM Interconnection’s capacity auction ends up imposing new costs on consumers. Shapiro argues that PJM is not currently allowing new power plants to request connection to its grid, which means its capacity auctions are leading to record-high costs without safeguarding reliability of the power grid.

Over the last several years, demand for energy has risen rapidly but PJM has been slow to allow new power sources onto its grid – and as a result, PJM capacity prices have skyrocketed.

PJM’s 2025/26 capacity auction, held in July 2024, resulted in costs of $14.7 billion – an over 800% increase from the prior year – with costs expected to rise further and be paid by customers in Pennsylvania and in other states across PJM.

We understand the governor’s point. PJM needs to do more to bring new electric generating stations into its interconnection. But we don’t understand why the governor is so concerned about your electric bills when it comes to PJM and seemingly couldn’t care less when it comes to Pennsylvania’s participation in the Regional Greenhouse Gas Initiative. RGGI, too, impacts electric ratepayers’ checkbooks – and Pennsylvania’s Supreme Court has ruled that the commonwealth’s entry into the greenhouse gas initiative violates the state constitution. But Shapiro, much like former Gov. Tom Wolf, is bound and determined to be part of RGGI whether or not it hurts consumers.

If Shapiro wants to sue PJM under the guise of consumer protection, logic dictates consumer protection should be the reason he puts an end to the RGGI fiasco once and for all, too.

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