Feb 12 (Reuters) – Grid operator PJM Interconnection has agreed to extend a price cap on its capacity auctions for another two years following legal action by the state, Pennsylvania Governor Josh Shapiro said in a post on X on Thursday. Shapiro said the move is expected to save 67 million Americans about $27 billion […]
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PJM to extend capacity auction price cap for two years, Pennsylvania governor says
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Feb 12 (Reuters) – Grid operator PJM Interconnection has agreed to extend a price cap on its capacity auctions for another two years following legal action by the state, Pennsylvania Governor Josh Shapiro said in a post on X on Thursday.
Shapiro said the move is expected to save 67 million Americans about $27 billion on their energy bills, bringing total savings for PJM customers to roughly $45 billion.
“Pennsylvanians can’t afford higher prices,” he added.
Last month, PJM Interconnection said it has begun discussions on creating a backstop auction, marking a step toward a procurement process designed to address rapidly growing power demand across its 13-state footprint.
PJM controls the power flow across 13 states largely in the Mid-Atlantic region, which includes the world’s largest concentration of data centers in Virginia. Other states are also becoming burgeoning hubs for server warehouses.
(Reporting by Anushree Mukherjee in Bengaluru; Editing by Nia Williams)