A plan by PJM Interconnection to put a lid on rising power prices while heading off the threat of electricity shortages across the 13-state regional grid could go to federal regulators this week.
Some generators and utilities inside the Eastern power market are still arguing over whether the plan negotiated with the office of Pennsylvania Gov. Josh Shapiro (D) can work. PJM’s board of managers will be asked Wednesday to sign off on the plan to limit payments to generators that pledge to supply power from mid-2026 to mid-2028.
The plan is a hastily drawn-up safety net that PJM officials hope can provide enough money to induce power plant owners to postpone closures or upgrade generators to bring more power to a system facing surging demand from data centers.
“We believe that not moving forward with this settlement would have left us in an untenable situation,” said Stu Bresler, PJM executive vice president for market services and strategy. “Supply and demand are not only getting tighter, but the situation is almost accelerating in that direction.”
