Citing 'unsustainable stress' from price volatility, grid operator PJM lays out reform options
News ClipPhillyVoice·PA·5/9/2026
PJM Interconnection, the largest US electricity grid operator, has proposed reforms to address "unsustainable stress" from price volatility and surging demand, partly due to data centers. The report highlights tightening supply as old power plants retire and new ones face hurdles, leading to a shift from managing surplus to scarcity. Pennsylvania Governor Josh Shapiro previously sued PJM over record prices, with federal regulators extending price controls.
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Gov: PJM Interconnection, Gov. Josh Shapiro, Pennsylvania, Federal regulators, Trump administration
PJM Interconnection, the nation's largest electricity grid operator based in the Philadelphia suburbs, has released a report outlining reform options for the wholesale electricity market. The move comes amid increasing scrutiny over record electricity prices and unprecedented demand from data centers, which have contributed to skyrocketing bills for consumers and businesses. PJM cites a convergence of three structural forces – growing demand from data centers and electrification, coupled with tightening supply due to retiring power plants and permitting issues for new construction – pushing the system into an era of scarcity.
The report notes that price volatility is creating "unsustainable stress" on the