Historic Multi-State Summit Puts Pressure on PJM for Grid Reform and Lower Energy Costs

The country faces the greatest energy challenge in a generation as new demands for electricity — like data centers — outpace aging infrastructure and our grid struggles to add more power sources quickly enough, requiring PJM to implement policies to process a higher demand at faster speeds.

Sept. 24, 2025

3 min read

The country faces the greatest energy challenge in a generation as new demands for electricity — like data centers — outpace aging infrastructure and our grid struggles to add more power sources quickly enough, requiring PJM to implement policies to process a higher demand at faster speeds — Josh Shapiro is the 48th Governor of the Commonwealth of Pennsylvania.

Governor Josh Shapiro opened the Summit on the State of PJM Interconnection in Philadelphia, where representatives from all 13 PJM states and more than 450 stakeholders met to address rising energy costs, grid reliability, and PJM’s governance.

Shapiro emphasized that “change is needed to keep energy costs low, bring new energy generation onto the grid more quickly, and meet the needs of the 67 million Americans who rely on this grid.”

He described the gathering as “an historic meeting,” noting that in PJM’s 98-year history “there has never been a meeting like this – bringing together representatives from all 13 states that make up the PJM grid to get around the table, take stock of the challenges facing this grid we’ve all come to rely on, and think creatively about potential solutions.”

The governor criticized PJM’s “slow, reactive approach,” pointing to a “D-minus rating for the speed of its interconnection queue,” which he said, “threaten[s] the very energy projects PJM says we need.” He warned that auction delays have already led to higher consumer costs, citing recent capacity auctions of $14.7 billion and $16.1 billion, far above the typical $2–3 billion range. He cautioned that without decisive action, states may be forced to consider leaving the PJM grid.

Shapiro highlighted his efforts to limit rate increases: “When we couldn’t come to an agreement, I sued them… and as a result of our efforts, we reached an agreement with PJM that staved off the kind of price increases they were talking about – saving ratepayers over 16 billion dollars over the next two years.” He added that “it shouldn’t take going to court to have our voices – and the voices of the 67 million Americans who are served by the PJM grid – heard by PJM leadership.”

Calling for greater state involvement, Shapiro noted that PJM “has the fewest avenues for customers and their elected representatives to be heard,” contrasting it with other regional grid operators. He urged collaboration, “We can’t keep doing what we’ve been doing in this rapidly changing world and expect it to work. It’s not working anymore. And it’s time to get serious about the need for significant reform.”

Shapiro also underscored Pennsylvania’s role as a major energy producer and signaled potential consequences if PJM fails to act, “If we need to chart a new course that delivers more for the good people of Pennsylvania – we will.”

Energy leaders have also been clear and direct about the need to reform PJM’s governance and markets.

Former FERC Chairman Mark Christie said, “When you’re on a commission like this, when you’re on the Virginia commission, when what you do affects what people have to pay in their monthly bills — and God knows we have millions of people struggling to pay their bills these days.” … “When it affects whether their lights are going to stay on, you have to remember those people who are not in the room.”

Calvin Butler, CEO of Exelon said, “Despite higher prices, we are not seeing the market respond fast enough. States have an opportunity to proactively bring control, certainty and cost benefits by pursuing options outside of the capacity market, including regulated generation.”