Governor Shapiro Secures Landmark Deal to Slash Energy Costs for Millions
In a major victory for consumers, Pennsylvania Governor Josh Shapiro has brokered a deal with PJM Interconnection, the regional grid operator, to reform its power market rules and save households and businesses a staggering $21 billion in energy costs over the next two years.
Averting Price Hikes Across 13 States
The agreement will shield consumers in all 13 states where PJM distributes electricity from excessive price increases, providing much-needed relief to 65 million people in the region. Shapiro’s efforts have ensured that the upcoming capacity auction price cap has been significantly reduced, from over $500 per megawatt-day to $325 per megawatt-day, thereby preventing billions of dollars in unnecessary energy costs.
Challenging Flawed Auction Design
In December, Shapiro filed a complaint with the Federal Energy Regulatory Commission (FERC) against PJM Interconnection, citing flaws in its capacity auction design that threatened to impose significant new price increases. The governor’s proactive stance has now led to a settlement that will have a direct impact on the wallets of millions of Americans.
A New Era of Energy Affordability
This landmark agreement marks a significant shift towards a more affordable energy future for the region. By addressing the root causes of price hikes, Shapiro has demonstrated his commitment to protecting the interests of consumers and promoting a more sustainable energy landscape. As the region looks to the future, this deal serves as a beacon of hope for a more affordable and equitable energy system.
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