Shapiro says this 'broken process' could lead to higher electricity costs. Here's what to know. [View all]

HARRISBURG — Pennsylvanians could face higher electricity bills if federal regulators don’t force the state’s grid operator to fix a “broken process” that artificially affects supply, Gov. Josh Shapiro’s administration says.

PJM Interconnection saw prices for the energy it sells to utilities skyrocket this summer. At least one major Pennsylvania utility company is warning that monthly bills may rise by $15 this year as a result, with more increases in store.

Shapiro argues the grid operator can fix the situation if it changes its energy auction rules. If it doesn’t, his complaint to the Federal Energy Regulatory Commission warns, the consequences could be dire.

“Pennsylvania ratepayers face potentially the largest unjust wealth transfer in the history of U.S. energy markets,” the complaint said.

PJM argues that Shapiro’s complaint doesn’t address the root cause of high energy prices. The real issue, the grid operator says, is growing demand and the closure of generators.

“We have been warning for over two years of the prospect that parts of our country could run short of power during high demand periods,” PJM said in a statement in response to Shapiro’s complaint. “This possibility has been growing, primarily as a result of state and federal policy decisions that are pushing generators to retire prematurely, and also due to unprecedented and rapidly growing data center construction.”

To understand the potential impact of Shapiro’s complaint, it’s important to know how energy — and energy prices — flow from the grid to your electric bill:

Continued at: https://www.spotlightpa.org/news/2025/01/pennsylvania-governor-josh-shapiro-energy-prices-electric-grid/