HARRISBURG – In a letter sent to PJM Interconnection leadership, Sen. Gene Yaw (R-23), chair of the Senate Environmental Resources and Energy Committee, urged major reforms to the regional capacity market to ensure states pursuing aggressive climate policies bear the costs of those decisions rather than shifting them onto Pennsylvania consumers.
“As a state that has responsibly maintained dispatchable generation and natural gas infrastructure, Pennsylvania should not be forced to subsidize the policy decisions of neighboring states that are actively undermining grid reliability,” Yaw said. “Families, manufacturers and employers deserve a market structure that rewards responsible energy policy rather than penalizing it.”
Yaw commended PJM’s recent white paper, “Powering Reliability Through Market Design,” for acknowledging growing reliability risks facing the electric grid. He said the report highlighted challenges caused by surging data-center demand, the retirement of dispatchable power generation and rising construction costs.
In his letter, Yaw specifically criticized policies in states such as Virginia and Maryland. He argued their aggressive renewable energy mandates, participation in the Regional Greenhouse Gas Initiative (RGGI) and rapid expansion of energy-intensive data centers have increased pressure on the electric grid while shifting higher costs across the entire PJM region.
Yaw also renewed his opposition to a flat, PJM-wide price cap extension supported by Gov. Josh Shapiro, arguing it unfairly spreads costs evenly across member states regardless of which states are creating the greatest strain on the system. Instead, he called for a hybrid approach that would maintain a base price cap while adding targeted surcharges in areas facing shortages caused by state policy decisions and rapid electricity demand growth.
A hybrid proposal, Yaw said, would place greater responsibility on states driving energy shortages and reliability concerns. It would also better recognize states like Pennsylvania, West Virginia and Ohio that continue supporting reliable power generation and helping maintain grid stability across the region.
Yaw also encouraged Attorney General Dave Sunday and Pennsylvania’s Office of Consumer Advocate to take a more active role in PJM and Federal Energy Regulatory Commission proceedings. He said greater involvement would help ensure Pennsylvanians are protected from rising costs tied to the energy policies of neighboring states.
For more state-related news and information, constituents can visit Yaw’s website at www.SenatorGeneYaw.com or follow him on Facebook and X @SenatorGeneYaw.
CONTACT:
Elizabeth Weitzel
717-787-3280