Governors from 12 states in the PJM power market announced a new agreement on Friday, supported by the White House, to address rising electricity prices and concerns regarding grid reliability. This initiative aims to expedite the connection of new power projects to the grid, starting with improvements to interconnection timelines set to begin in 2026. Critics, however, caution that the plan may entrench reliance on fossil fuels while delaying the integration of cleaner, more affordable energy sources.
The proposal targets the longstanding backlog within PJM Interconnection, which has left over 250 gigawatts of proposed generation waiting for years to be connected. Advocates highlight that approximately 98 percent of this backlog consists of renewable energy projects. If these projects were to be realized, they could provide energy for around 60 million homes, thereby reducing costs for consumers and alleviating pressure on the energy grid without contributing to pollution.
In addition to addressing interconnection delays, the agreement suggests creating a distinct pathway for energy-intensive data centers to contract with new power plants. Critics express concern that this could lead to a prioritization of gas-fired projects over renewable options, effectively allowing these facilities to bypass the existing queue of renewable projects. Such a move could inflate costs for consumers if lucrative contracts with data centers divert capacity away from the broader market.
“This is a first step, but the details matter,” stated Carolena Bellini, a clean energy associate at the PennEnvironment Research & Policy Center. She emphasized that the core issues plaguing the region remain unresolved. “Hundreds of gigawatts of clean, reliable power have languished under PJM’s jurisdiction for years,” Bellini added, calling for reforms that would enable quicker integration of renewable energy and storage rather than promoting new gas plants.
Similarly, Abe Scarr, energy and utilities director at the PennPIRG Education Fund, echoed these sentiments, warning that temporary measures will not address systemic problems. He stated, “As long as PJM stalls on actually making it possible for new, clean power to come online, regular consumers will continue to pay the price—literally.” Scarr also underscored the need for safeguards to ensure that large tech facilities contribute their fair share to the energy grid.
Supporters of the reform initiative argue that fixing interconnection issues—rather than relying on one-off agreements—will lead to lower bills, enhanced reliability, and prevent the region from becoming dependent on slower-to-build fossil fuel infrastructure. The implications of this agreement are significant, affecting the approximately 67 million Americans served by PJM across the Mid-Atlantic and Midwest.
The future impact of Friday’s agreement will depend on the design and implementation of the proposed reforms, which are now under scrutiny from both the White House and the participating governors. Whether this initiative serves as a catalyst for meaningful change or merely a detour towards increased fossil fuel reliance remains to be seen.
