Pennsylvania Governor Josh Shapiro announced that his settlement with PJM Interconnection has saved consumers billions of dollars and prevented a historic spike in energy prices for 65 million people across 13 states, including 13 million Pennsylvanians. 

PJM agreed to reduce its auction price cap from over $500 per Megawatt-Day to $329 per Megawatt-Day, preventing runaway prices that would have unnecessarily driven up utility bills across the region. 

The $329 Megawatt-Day represents an $8.3 billion decrease in costs to consumers across the region, meaning 13 million Pennsylvanians will save over $1,6 billion on their electricity bills, averaging $116 per household. 

In December of 2024, Governor Shapiro filed a complaint with FERC, warning that PJM's flawed capacity auction design would result in historic price increases. PJM operates the electric grid and capacity market for the mid-Atlantic region, including Pennsylvania.

Governor Shapiro pushed PJM to reduce their price cap, and a diverse coalition came together to support the Governor's message, including four governors, energy and consumer advocates, and the Organization of PJM States. 

The negotiated resolution is one part of the Shapiro Administration's sustained engagement with PJM. Governor Shapiro continues to repeatedly press for long-term solutions that address increasing costs, urging PJM to:

•Speed up their stalled interconnection queue to get new projects online, like the restart of Three Mile Island in Pennsylvania. 

•Rely on member states to help determine which projects are ready and to speed up project approvals like the Governor has done in Pennsylvania.

•Implement new best practices established by FERC in order to be better prepared in extreme weather scenarios and ensure affordable, reliable power year-round. 

•Reform the capacity market to more accurately reflect real world conditions, ensuring grid reliability while saving consumers money on their utility bills.

In addition to fighting for PJM reform, the Shapiro Administration is also working with its legislative partners in the General Assembly to pass the Governor's Lightning Plan. Supported by a broad coalition of labor and industry leaders, environmental advocates, and consumer groups, the Governor's commonsense energy plan will create jobs, lower costs for consumers, speed up permitting, and protect Pennsylvania from global instability by building more energy generation in the state.