Lawmakers and Advocates Demand Reforms from PJM, Regional Grid Manager

Outside of PJM’s annual meeting, speakers called out grid mismanagement, rising electricity costs, and failure to bring cheaper clean energy online

 

BALTIMORE, MD — PJM Interconnection (PJM), the regional grid operator for Maryland and a dozen other states, is holding its annual conference at the Baltimore Marriott Waterfront from May 11 to 13. State lawmakers and advocates held a press conference today on the sidewalk outside the hotel to call out PJM’s mismanagement of the grid, which has led directly to surging energy prices. 

“Maryland families are already seeing higher electric bills, driven in part by rapid growth in energy-hungry data centers. Ratepayers shouldn’t have to compete with global corporations for power,” said Senator Katie Fry Hester (D-Maryland). 

“Pennsylvania produces the energy that powers much of the PJM region, yet our residents should not be asked to subsidize the explosive growth of private data centers,” said Rep. Danielle Otten (D-Pennsylvania). “We need fairness and accountability — making sure new industrial demand brings new supply with it. Protecting reliability while keeping electricity affordable is essential for our households, our manufacturers, and our economic future.” 

“Clean energy is chomping at the bit to lower energy bills, but PJM is artificially slowing clean energy from coming onto the grid in order to benefit fossil fuel interests,” said Delegate Lorig Charkoudian (D-Maryland).  

“PJM needs to more swiftly and efficiently greenlight clean energy projects and hold data centers responsible for paying for their own energy needs instead of further burdening already stretched ratepayers,” said Senator Shelly Hettleman (D-Maryland) 

PJM’s policies are delaying lower-cost clean energy projects while keeping more expensive power sources on the system – contributing to higher electricity bills across the region. A recent analysis found that if PJM were to allow more clean energy to connect to the grid, it would save each of its customers $500 a year in reduced energy bills. Advocates shared recent cost savings from clean energy in other regions, such as Massachusetts’ recent announcement that residents are saving $1.4 billion over the next 20 years with the completion of the Vineyard Wind offshore wind project. Meanwhile, PJM is forcing ratepayers to pay coal plants just south of Baltimore hundreds of millions of dollars to stay open, when cleaner alternatives would be less expensive. 

“PJM is failing us not by accident, but by design. It has been co-opted by fossil fuel energy generators and utilities and is quickly being overtaken by Big Tech and their data center companies as well. All the while, PJM’s members have been raking in massive revenues due to energy market dysfunction. PJM won’t help energy bills decrease until there is meaningful governance reform within PJM. And, they missed an opportunity by selecting their Board Chair and interim President as their new President and CEO just last month,” said Jake Schwartz, Federal Campaigns Manager for Chesapeake Climate Action Network.

“If PJM were truly focused on lowering soaring energy bills, the solution would be clear: invest in clean energy. Instead, PJM continues to prioritize energy sources that are neither clean nor affordable, while Marylanders face growing pressure from rising utility, fuel, and healthcare costs. It’s time for PJM to listen to its customers and deliver the reliable, affordable clean energy Maryland families deserve,” said Rebecca Rehr, Director of Climate Policy & Justice for Maryland LCV.  

Find a recording of today’s press conference here.

# # #

PJM Fails to Require Data Centers to Bring Their Own Generation, Launches New Process to Build Gas Plants

Lawmakers and other stakeholders sought to enact new policies that would have driven down power prices, but PJM Board of Managers did not adopt them

WASHINGTON, D.C. — PJM Interconnection, the entity that manages the regional grid serving Maryland and other states, today issued their long-awaited position on the Critical Issue Fast Path (CIFP) aimed at addressing rapidly growing energy needs of new data centers. This move follows a November stakeholder vote that failed to gain consensus as to any one CIFP proposal, a December capacity auction in which PJM, for the first time, failed to meet its grid reliability reserve target, and today’s announcement from the White House and the governors of the 13 states PJM serves.

PJM’s recommendation comes as data centers look to add 30 gigawatts of energy demand to the grid in the coming years. Without any protections, this new data center load could cost the average ratepayer an additional $70 a month. On November 19th, 2025 PJM members voted on different potential solutions to the costs created by data centers. At that voting session, the comprehensive proposal that got the most votes was one that would not allow data centers to connect to the PJM grid until there is sufficient generation to provide electricity to those facilities. This Bring Your Own Generation (BYOG) approach is broadly supported by stakeholders. Advocates from across the PJM region recently sent a letter to PJM urging support for a Bring Your Own Generation requirement. 

However, in their CIFP proposal, PJM rejected BYOG proposals that would have ensured new data center load is matched with equivalent new generation. Instead PJM is creating a new expedited interconnection process that will be biased towards fossil fuels. 

“Under PJM’s proposal there are still not sufficient protections for ratepayers,” said Del. Lorig Charkoudian, vice chair of the House Economic Matters Committee. “The primary fast tracking of energy PJM is doing is biased towards fossil gas. Given that solar and batteries are the fastest, cheapest way to provide new generation, this is another example of PJM serving for-profit energy companies and not families who can’t afford their energy bill.” 

PJM’s Board of Managers officially recommended that: 

  • PJM launch a Reliability Backstop Procurement, which will allow new gas plants to skip the line and get connected to the grid before clean energy projects which have been waiting to connect for years.
  • Improve PJM’s process of projecting demand growth.
  • Allow data centers to connect to the grid more quickly if they choose to bring their own generation.
  • Data centers that do not bring their own generation will lose access to the grid first in a scenario where the grid can not meet the demand of the grid
  • Review the reliability pricing model that PJM currently uses.
  • PJM request feedback on extending the capacity auction price cap for the next two years. 

While some of these proposals have the potential to partially lower the cost spikes associated with data centers, the proposal fails to take the two most necessary actions: enacting firm requirements that data centers bring their own generation and allowing clean energy to connect to the grid faster. 

“The fastest way to reduce energy costs is to build the clean energy waiting on PJM’s approval to connect to the grid. However, instead of deploying the clean energy projects already in their queue, PJM is beginning a new process that will favor fossil fuel power plants,” said Quentin Scott, Federal Director at Chesapeake Climate Action Network. 

The proposal put forward by the PJM Board of Managers will now be reviewed by PJM stakeholders before being sent to the Federal Energy Regulatory Commission for final review. 

# # #

Chesapeake Climate Action Network is the first grassroots organization dedicated exclusively to raising awareness about the impacts and solutions associated with global warming in the Chesapeake Bay region. Founded in 2002, CCAN has been at the center of the fight for clean energy and wise climate policy in Maryland, Virginia, Washington, DC and beyond.

PJM Auction Means Another Year of High Electricity Prices

Despite pressure from Maryland legislative leaders and advocates, PJM fails to connect clean energy to bring prices down 

 

BALTIMORE, MD – PJM, the electricity grid operator responsible for keeping the lights on in 13 Mid-Atlantic and Midwestern states plus the District of Columbia, shared the results of its most recent capacity auction yesterday: there is no good news for ratepayers. As a result of this auction, the total price of electricity has reached $16.4 billion. The prices that customers in PJM’s region will start paying in June 2026 are nearly $14 billion higher than the $2.2 billion paid in 2024. And that increase would have been even greater if not for the temporary price cap that was negotiated by Pennsylvania Governor Josh Shapiro, in conjunction with Maryland Governor Wes Moore and other governors. Without this cap, the price of the capacity auction would have been 59% higher. Future auctions will not have this protection in place, underscoring the urgent need for PJM to adopt longer-term reforms that safeguard ratepayers.  

If PJM integrates clean energy projects into its grid more quickly, that could lower capacity prices and enhance grid reliability. Compared to other grid managers, PJM has one of the longest timelines in the country for connecting new clean energy projects. 

PJM and the large energy generators and utility companies that dominate its board must be  held accountable for the price spikes they have caused. PJM makes decisions that are to blame for rising costs and increasing the risk of blackouts, e.g., not requiring data centers to provide their own power or agree to be shut off in the event of low energy supply, as many advocates and elected officials have urged. PJM has also failed to protect ratepayers from having to shoulder additional capacity costs created by new data center demand — a cost which could reach $100 billion by 2032. 

Governor Moore, multiple state agencies, and members of the Maryland General Assembly have pushed back on PJM for flaws in its rate-setting process and chronic failure to connect clean energy projects to the grid. Most recently, Gov. Moore joined a bipartisan group of Governors calling on PJM to make policy changes to mitigate skyrocketing electric supply rates. 

In a functioning capacity market, prices rise in response to low energy supply, incentivizing the development of new power sources to meet demand. However, PJM hasn’t lacked new energy projects interested in connecting to the grid. As of April 2024, PJM had 286.7 gigawatts (GW) of backlogged proposed energy projects waiting for PJM’s approval to be connected to the grid – enough to power roughly 228 million homes for a year. More than 90% of these projects are clean energy like wind, solar, and battery storage, fueling criticism that PJM is standing in the way of new clean energy and driving up profits for legacy power generators. A recent analysis found that if PJM increased the speed at which it allows new projects to connect to the grid, it would save individual households at least $500 a year. 

Instead of fixing its broken interconnection process, PJM is considering creating a fast-track that would favor large thermal generators like gas plants and allow them to bypass the line. PJM acknowledges that this expedited track may cause further delays in processing the thousands of cheaper and quicker to build wind, solar, and storage projects waiting in the queue.  

While PJM’s slow processes have limited Maryland’s ability to build new energy projects, Maryland lawmakers took action in 2025 to speed up the deployment of batteries and solar power in the state.

Increases in electric supply rates have exacerbated rate pain for Marylanders who have already been struggling with the high utility delivery charges. Subsidiaries of the Exelon Company, including BGE, PEPCO, and Delmarva Power, increased delivery rates for gas and electricity at a rate far outpacing inflation. During the 2025 legislative session, the Maryland General Assembly made several changes to utility ratemaking policies, which are expected to slow the rate of increase when implemented by the Maryland Public Service Commission.

In response to the auction results, advocates made the following statements:

“This capacity market auction is another example that PJM’s failure to connect clean energy to the grid is driving up our energy bills,” said Brittany Baker, Maryland Director of Chesapeake Climate Action Network. Ratepayers are footing the bill for PJM’s outdated policies and slow-moving practices. This massive wealth transfer is breaking the backs of Marylanders.”

“Marylanders will face another year of outrageous electricity bills because PJM has not taken the necessary steps to allow the clean energy projects in the queue to supply the clean, reliable energy we need to meet rising demand,” said Maryland PIRG Foundation Senior Advisor Emily Scarr. “PJM needs to reform its broken interconnection process and ensure that the decisions it makes align with the interests of the public, not utility and incumbent power generator interests. Marylanders, and all consumers in the PJM region, deserve a grid that is reliable, functional, and that doesn’t put its thumb on the scale for dirty power.”

“PJM is trying the same thing over and over, and they keep getting the same result: higher energy prices for all of us,” said State Delegate Lorig Charkoudian. “It’s past time for PJM to try something new and implement reforms that will lower our energy bills by allowing more clean energy to connect to the grid.” 

“These are difficult times for Maryland families, and many report they can barely make ends meet with increases in rent, food prices, and other living expenses. Adding higher electric bills will push some families into homelessness or bankruptcy,” said Laurie Welch with Third Act.

###

PJM’s Coal Bias Is Giving Us Pollution, High Electric Bills

Op-Ed by Jake Schwartz, CCAN Federal Campaigns Manager, initially published in the Bay Journal.

Your electricity bill is going up again. And no, it’s not just inflation. A big part of the problem is PJM Interconnection, the federally regulated but largely independent grid operator that controls the flow of power to 65 million people across 13 states and the District of Columbia. Instead of embracing cheaper, cleaner energy, PJM has clung to its fossil fuel biases, and we’re all paying the price.

Every year, PJM holds a “capacity auction” that determines how much consumers will pay to guarantee electricity for future years. On Sept. 1, electric bills increased as a result of the 2024 capacity auction. And earlier in the summer, when PJM released the 2025 auction results, households across much of the region learned that their bills would go up once again in 2026. The blame doesn’t rest on abstract market forces; it rests on PJM’s refusal to prioritize connecting clean energy to the grid.

Pennsylvania Governor Josh Shapiro delivers remarks
Pennsylvania Governor Josh Shapiro

At a moment when new renewable technologies promise abundant, low-cost and reliable power, PJM has allowed the grid to stagnate. Instead of connecting the countless clean energy projects that have been stuck in a decade-long queue, PJM has fast-tracked fossil fuel plants, mostly gas-fired, to jump this very same line. This is not just bad for the environment. It’s also a direct hit to our wallets. Oil and gas prices are volatile. Coal plants are aging, inefficient and costly. Yet PJM seems determined to double down on fossil fuels, forcing consumers to pay more.

Recent pushback from politicians, led by Pennsylvania Gov. Josh Shapiro, has successfully convinced PJM to institute a price cap, putting a limit on how high consumer prices can be. In states like Maryland and Virginia, customers served by BGE and Dominion Energy may pay less next year thanks to this pro-consumer response — but it is only a temporary solution, and the rest of the region will face higher costs. Pushback at the state level, however, shows that PJM’s policies can be challenged. Political leaders can successfully fight for reforms that help our pocketbooks.

In Maryland, prices are rising for another reason as well. Earlier this year, as the Chesapeake Bay Journal reported in its April issue, PJM mandated that two coal plants had to remain online even though their owners wanted to retire them. Stuck with its fossil fuel-centric worldview, PJM saw no alternative to meet energy demand than to keep inefficient coal plants online past their retirement date. Because coal is so expensive, this decision will cost some Marylanders up to 24% more per month, according to RTO Insider. This is nothing but a subsidy for highly polluting, uneconomical coal plants, imposed on consumers who had no say in the process.

Air photo of Brandon Shores Generating Station in Anne Arundel County, Maryland, near Baltimore. View facing north.
Air photo of Brandon Shores Coal Plant in Anne Arundel County, Maryland, near Baltimore.

The bitter irony is that PJM’s barriers to clean energy are self-inflicted. More than 3,000 renewable energy projects are currently waiting in PJM’s queue, according to Inside Climate News. If even a fraction were given the green light, consumers could see significant long-term price relief. Wind and solar are now cheaper than coal and gas in most of the country. Battery storage, once a futuristic concept, has rapidly scaled to make those renewable resources reliable around the clock. But as long as PJM keeps its thumb on the scale for fossil fuels, the grid will remain more expensive and less resilient than it should be.

Despite these challenges with PJM, reforms are being discussed. For the first time in decades, this fall PJM filled two board seats and will appoint a new CEO. New leadership could finally bring PJM into the 21st century, prioritizing clean energy integration and consumer affordability. Or, if fossil fuel interests fill the seats, we could see more of the same: higher bills, higher emissions, and fewer options for customers.

This winter, PJM will revisit what it calls the Reliability Must Run rule, the provision that forced the Maryland coal plants to stay online — and could do the same elsewhere. The stakes could not be higher. This isn’t about something abstract. It’s about being able to afford to keep the lights on. Consumers and elected leaders across the region must make it clear that we can never again be required to pay more for electricity to keep old coal plants online.

Unfortunately, even the reform process itself has been shaky. While there were a series of task force meetings scheduled over the summer to discuss PJM reforms, many were cancelled without explanation. It seems clear that PJM is sticking to the energies of the past while the energy prices of the future are only going up. PJM may control the levers of our grid, but ultimately, the public pays the bill. We have to make PJM care.

Op-Ed by Jake Schwartz, CCAN Federal Campaigns Manager, initially published in the Bay Journal.

About the author:

Jake Schwartz (he/him) is the Federal Campaigns Manager at CCAN. Jake grew up in Philly (Go Birds!) and has organized on environmental and electoral campaigns across the country, from Oregon to Indiana. His career in climate organizing began at Green Corps, an environmental advocacy fellowship, where he worked on local, state, and federal campaigns.

Most recently, he was on the Harris-Walz campaign where he helped run the Delegate Operations and then Climate Engagement teams. Outside of work, you can find him running or biking in Rock Creek Park or reading at Meridian Hill Park.

photo of the author of the blog, Jake Schwartz