An electric generation auction yesterday for the PJM grid resulted in higher prices beginning in June 2027. Prices reached $333.44/megawatt-day. PJM manages the electric grid for a 13-state region that includes Pennsylvania. The auction results show a shortage in the ability to meet peak demand. Previous auctions have already led to a 1,000% increase over a two-year period. 

“This auction leaves no doubt that data centers’ demand for electricity continues to far outstrip new supply, and the solution will require concerted action involving PJM, its stakeholders, state and federal partners, and the data center industry itself,” said Stu Bresler, PJM’s incoming chief operating officer. Click here for PJM’s press release.  

Gov. Josh Shapiro lauded his settlement with PJM earlier this year to prevent even higher price increases at yesterday’s auction and a July auction. The settlement set a cap on electric generation prices at the auction. To bring more electric generation online, Shapiro is pressing for reform to PJM load forecasting, speeding up PJM’s interconnection queue for bringing new generation online, and accelerating siting and permitting through Shapiro’s Lightning Plan, which includes the RESET board legislative proposal. The RESET board proposal, HB 502, would give a statewide board of administration officials the authority to site electric generation and battery facilities ((including larger commercial solar facilities) instead of local governments. Click here for Shapiro’s press release.