Gov. Josh Shapiro calls for states to have more sway over the largest U.S. power grid

States want more power over their power grids: That was the message Gov. Josh Shapiro delivered Monday morning at the start of a regional energy summit in Philadelphia. 

Pitching the “PJM Governors’ Collaborative” at the Summit of the State of PJM Interconnection, Shapiro called for states to have more of a say in PJM, a member-run organization overseen by a board of managers, to better advocate for their interests in the regional grid. 

“It’s time to think big and work together to reimagine the future of PJM – to build a grid that works better for Pennsylvania and each of our states,” Shapiro said to the crowd at the National Constitution Center. “For the largest grid in the nation to have the fewest avenues for consumers and their elected representatives to be heard is unacceptable and outdated.” 

PJM, which operates the power grid in 13 states and Washington, D.C., handles electricity for more than 66 million people, or roughly 1 in 5 Americans. The calls for collaboration come as consumers face soaring electricity bills. 

“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 for everything from running a business to keeping the light on at home,” Shapiro added. “But over the last few years, let’s be frank, PJM has been slow to let new generation through its queue to join the grid at a time when demand for energy is going up.” 

Rising energy usage, coupled with slow progress in increasing power on the grid, has led to higher energy prices, prompting state leaders to seek a greater role in PJM’s governance and its decision-making process. 

The mid-Atlantic and Midwestern states that constitute PJM are also home to the largest concentration of energy-intensive AI data centers in the world. 

Pennsylvania, already the largest electricity-producing state in the PJM region, has lawmakers pushing to make the state a data center hub. And without additional oversight, leaders worry that the proliferation of data centers will continue to be underestimated by entities like PJM, putting even more pressure on the power grid.

“As we confront rising energy demand, is PJM’s capacity market, which we have entrusted with balancing energy supply and demand and maintaining resource adequacy, capable of bringing new energy resources onto the grid at prices that are affordable to consumers?” Shapiro asked The way ahead, he added, “means looking forward to really grappling with how we can work together to meet our region’s energy needs while keeping costs down.”

Capacity payments – made to avoid blackouts during spikes in demand – have risen by about 1,000% over the last two annual energy auctions, due to demand for energy from data centers and the stagnant power supply. 

The Shapiro administration recently reached an agreement with PJM to lower the capacity auction price cap to avoid price hikes for consumers. 

Shapiro, who also called out President Donald Trump’s administration for “cutting funding for new energy projects,” is among several governors seeking a more formal role in PJM, pointing toward similar models used in the Midwest and New England grids.

“This slow, reactive approach is no longer working for our states and the communities we serve,” Shapiro said. “And it’s all happening at a time when the Trump administration is cutting funding for new energy projects that are almost complete, at a time when we need more generation.”