Reforming PJM’s broken project approval process would cut household energy costs, create hundreds of thousands of jobs, and supercharge local economies, according to a new independent report from Synapse Energy Economics. Today, officials from the Murphy and Moore administrations and New Jersey Sen. Andrew Zwicker joined Evergreen to spotlight the findings of “Tackling the PJM Electricity Cost Crisis,” which outlines the economic benefits for the Mid-Atlantic region if PJM fixes systemic issues with its interconnection queue. The report compares PJM’s current status quo with a reformed scenario in which PJM makes meaningful changes to its project approval process to bring reliable, affordable energy online faster. In every state modeled, Synapse found clear, significant gains for households, workers, and local economies. Evergreen was also joined by Pennsylvania state officials for a local briefing earlier in the day.
The modeling projects that reforms to clear PJM’s interconnection queue will drive significant cost-savings and economic growth across the Mid-Atlantic region, resulting in:
- $505 in annual average household energy savings.
- 313,000 additional jobs each year across the PJM region.
- 23% lower electric bills for businesses and industrial customers.
With electricity demand growing rapidly, PJM’s broken interconnection process is stalling the development of new energy projects. On average, new project approvals take over five years—longer than any other region in the country. This backlog is pushing electricity prices higher, deepening reliance on unreliable and costly fossil fuels, and preventing the grid from adapting to meet future demand.
The recent settlement with Pennsylvania Gov. Josh Shapiro, alongside pressure from neighboring governors, makes clear that PJM has the authority to act. Without reform, consumer costs are projected to increase by 60 percent.
The report analyzes PJM’s existing policies and its failure to bring adequate energy online. It also offers strategic policy recommendations to unclog the queue and get projects online faster. Key recommendations include:
- Reviewing requests faster: Set a mandatory 150-day study timeline and pursue study automation.
- Consider all technologies: Create a level playing field for energy storage and explore alternative transmission solutions.
- Utilize existing capacity: Allow developers to use interconnection rights of existing or retiring plants.
- Improve transparency and governance: Make PJM votes public and ensure proper representation for consumers and environmental groups.
"This report by the Evergreen Collaborative could not come at a better time," said Eric Miller, executive director of Governor Murphy's Office of Climate Action and the Green Economy. “Following PJM’s recent catastrophic capacity auction that will raise energy prices on NJ consumers by 20% or more, we need common-sense reforms at PJM to bring more clean power generation online as quickly as possible."
“Maryland believes in pursuing clean, affordable energy and that it must be achieved expeditiously,” said Paul Pinsky, Maryland Energy Administration director. “It seems that by allowing a long queue and implicitly encouraging any energy, fossil fuel-produced included, PJM is neither helping its member states or, for that matter, the planet.”
“This report makes clear that PJM's outdated processes favor fossil fuels over cheaper renewables,” said Sen. Andrew Zwicker (LD-16). "PJM's bias against clean energy, such as solar and wind, is driving up utility rates for working families in New Jersey. The reforms we've outlined today are common-sense and will put us on the path to a smarter grid, more renewable energy, and more affordable electricity for the long-term."
“The PJM region is at a tipping point: household electricity costs are skyrocketing, and affordable, clean energy is stuck in limbo. But PJM’s broken approval process is a massive barrier to progress. Low-cost wind and solar projects are ready and waiting—what’s missing is action,” said Julia Kortrey, Evergreen Collaborative deputy state policy director. “PJM must stop slow-walking reforms. It’s time for PJM to cut red tape, lower electricity prices, and bring clean energy online to meet growing demand.”
“If PJM doesn’t fix its broken interconnection queue, electricity bills across the region could climb nearly 60 percent by 2040. Our analysis found that reforms to speed up the process to bring new energy projects online could produce real and significant cost reductions for households and businesses alike,” said Pat Knight, Synapse Energy Economics senior principal. “PJM will need near-term action if it is to meet fast-growing demand, especially from data centers, without burdening customers with hefty bill increases.”
Read the full report here.
Additional state-specific fact sheets detailing the benefits of PJM interconnection reform can be found here: