Governor Shapiro and PJM Interconnection Finalize Settlement to Save Consumers Billions in Energy Costs
Pennsylvania Governor Josh Shapiro has successfully reached an agreement with grid operator PJM Interconnection, addressing concerns raised in his recent complaint about the power market rules. This settlement will result in significant savings for consumers in the 13 states served by PJM.
Previously, Shapiro filed a complaint with the Federal Energy Regulatory Commission (FERC) highlighting flaws in PJM's capacity auction design. The agreement now lowers the capacity auction price cap from over $500 per megawatt-day to $325 per megawatt-day, preventing unnecessary price increases and saving consumers an estimated $21 billion over two years.
This settlement ensures that consumers in states receiving PJM's electricity will be protected from excessive price hikes, providing much-needed relief to 65 million residents in the region.