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New Jersey lawmakers joined regional leaders outside PJM Interconnection’s annual meeting to criticize the grid operator for policies they say are driving up electricity costs and delaying cheaper clean energy projects.
“We can pass policy at the state level to protect our constituents from paying for the massive energy usage of data centers, but the states can’t do it alone,” said Assemblyman Dave Bailey, Jr. (D-NJ). “PJM needs to work with us to establish rules and enact reforms that prioritize the regular ratepayers, not tech companies and developers. If they don’t, it’s our job to hold PJM accountable. You rarely see this many legislators from different states come together with a common goal, but it shows just how important this issue is.”
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By: Chesapeake Climate Action Network
BALTIMORE, MD — PJM Interconnection (PJM), the regional grid operator for Maryland and a dozen other states, is holding its annual conference at the Baltimore Marriott Waterfront from May 11 to 13. State lawmakers and advocates held a press conference today on the sidewalk outside the hotel to call out PJM’s mismanagement of the grid, which has led directly to surging energy prices.
“Maryland families are already seeing higher electric bills, driven in part by rapid growth in energy-hungry data centers. Ratepayers shouldn’t have to compete with global corporations for power,” said Senator Katie Fry Hester (D-Maryland).
“We can pass policy at the state level to protect our constituents from paying for the massive energy usage of data centers, but the states can’t do it alone,” said Assemblyman Dave Bailey, Jr. (D-NJ). “PJM needs to work with us to establish rules and enact reforms that prioritize the regular ratepayers, not tech companies and developers. If they don’t, it’s our job to hold PJM accountable. You rarely see this many legislators from different states come together with a common goal, but it shows just how important this issue is.”
“Clean energy is chomping at the bit to lower energy bills, but PJM is artificially slowing clean energy from coming onto the grid in order to benefit fossil fuel interests,” said Delegate Lorig Charkoudian (D-Maryland).
“PJM needs to more swiftly and efficiently greenlight clean energy projects and hold data centers responsible for paying for their own energy needs instead of further burdening already stretched ratepayers.” said Senator Shelly Hettleman (D-Maryland).
“Even in Pennsylvania, which is the largest net exporter of energy in the eastern United States, families, school districts, municipalities, and small businesses are getting crushed by rising electric bills,” said Rep. Danielle Friel Otten (D-Pennsylvania). “PJM is uniquely positioned to release this pressure from the marketplace by opening the grid to clean, reliable, affordable energy and requiring large corporate users, energy generators, and electric distribution companies to play fair. We are not asking anyone to sacrifice; we are simply calling on PJM to meet the moment with honesty and accountability to the 67 million ratepayers across their region.”
PJM’s policies are delaying lower-cost clean energy projects while keeping more expensive power sources on the system – contributing to higher electricity bills across the region. A recent analysis found that if PJM were to allow more clean energy to connect to the grid, it would save each of its customers $500 a year in reduced energy bills.
Advocates shared recent cost savings from clean energy in other regions, such as Massachusetts’ recent announcement that residents are saving $1.4 billion over the next 20 years with the completion of the Vineyard Wind offshore wind project. Meanwhile, PJM is forcing ratepayers to pay coal plants just south of Baltimore hundreds of millions of dollars to stay open, when cleaner alternatives would be less expensive.
“PJM is failing us not by accident, but by design. It has been co-opted by fossil fuel energy generators and utilities and is quickly being overtaken by Big Tech and their data center companies as well. All the while, PJM’s members have been raking in massive revenues due to energy market dysfunction. PJM won’t help energy bills decrease until there is meaningful governance reform within PJM. And, they missed an opportunity by selecting their Board Chair and interim President as their new President and CEO just last month,” said Jake Schwartz, Federal Campaigns Manager for Chesapeake Climate Action Network.
“If PJM were truly focused on lowering soaring energy bills, the solution would be clear: invest in clean energy. Instead, PJM continues to prioritize energy sources that are neither clean nor affordable, while Marylanders face growing pressure from rising utility, fuel, and healthcare costs. It’s time for PJM to listen to its customers and deliver the reliable, affordable clean energy Maryland families deserve,” said Rebecca Rehr, Director of Climate Policy & Justice for Maryland LCV.
Find a recording of today’s press conference here.
