The largest U.S. grid operator Thursday agreed to extend price caps on incentive payments for power generators, in a shared win for an unexpected political collaboration between President Donald Trump and a dozen governors headed by Pennsylvania’s Democratic Gov. Josh Shapiro.
The decision limits the top price that the PJM Interconnection will pay electricity generators who pledge to be operating in the two years from mid-2028 to mid-2030, a critical period when an explosive growth in data center power may arrive, threatening to potential supply emergencies, according to the grid operator.
With Trump under political fire for price inflation in energy and other consumer items, the White House linked up with a group of governors organized by Shapiro.
At a White House-hosted meeting last month, a “statement of principles” was issued by the governors of the PJM states and Interior Secretary Doug Burgum and Energy Secretary Chris Wright. It directed PJM to continue the price caps, due to expire in mid-2028, and broker long-term supply contracts between data center developers and generation owners to help smooth the rising prices of power in the region.
