We Need Swift Action on PJM’s Flawed Market Designed to Boost Fossil Fuels or PA Should Withdrawal From PJM
PennFuture strongly supports Governor Josh Shapiro's formal warning to PJM Interconnection
PennFuture strongly supports Governor Josh Shapiro's formal warning to PJM Interconnection Chair Mark Takahashi that without meaningful action to address unjust and unreasonable costs on Pennsylvanians, he may be forced to consider the state’s withdrawal from PJM markets. PJM’s market design is creating a windfall for polluting fossil fuel sources, inflating utility costs, and continuing to slow the process of deploying new clean generation and storage resources.
Governor Shapiro is showing his commitment to protecting Pennsylvanians from unfairly high energy costs while providing a cleaner, more sustainable future for the Commonwealth.
This past summer, energy prices to utilities operated by PJM saw dramatic increases. Although PJM attributes these price hikes to rising energy demand, the underlying issue remains clear: gas resources have been much less reliable than promised and PJM has struggled to integrate the clean, renewable energy sources we need in a timely manner.
There are over 2,000 energy generation projects pending in the PJM queue, with 90 percent of these projects focused on clean, renewable energy alternatives such as wind, solar, and battery storage. Despite this significant push for cleaner energy, PJM has failed to address systemic issues that would allow these projects to come online faster and more effectively. And Pennsylvanians are feeling the impacts of this delay in their wallets.
“If PJM continues to delay the integration of clean energy into the grid, it’s not just a missed opportunity — it’s a failure to act in the best interests of Pennsylvanians,” said PennFuture President & CEO Patrick McDonnell. “The Commonwealth is ready for a renewable energy future that will lower utility costs for consumers and reduce greenhouse gas emissions, but PJM must take steps to allow that future to unfold. If PJM is unwilling to address these access issues, we believe all options should remain on the table, including leaving PJM.”