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, Pennsylvania Department of Environmental Protection Acting Sec. Jessica Shirley, Rep. Mandy Steele, and Keystone Energy Efficiency Alliance 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.

The modeling projects that reforms to clear PJM’s interconnection queue will drive significant cost-savings and economic growth across the Mid-Atlantic region. In Pennsylvania, that would result in: 

• $500 in annual average household energy savings. 
• 37,500 additional jobs each year across the Commonwealth.
• 20% 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.

“Pennsylvania’s energy landscape is changing quickly, and will continue to change more rapidly in the coming years. We need more electricity on the grid to be able to be ready for data centers, electric vehicles, and home electrification,” said DEP Acting Secretary Jessica Shirley. “Governor Shapiro’s Lightning Plan will bring lower energy costs and clean energy for Pennsylvania, and the Shapiro administration is ready to work with PJM towards a stronger, more affordable energy future.”

“Electric bills are 20% higher than they should be. I see people in my office every day that are struggling with rising costs,” said Rep. Mandy Steele. “We’ve got to help these families. It’s time for PJM to speed up their timeline. We need new energy projects built now.”

"Demand on our grid is growing, and prices are rising. We need a rational, predictable plan of action that accelerates changes in how PJM is managing power in our region and speeds up the waiting line of energy projects that could help us to lessen the sting,” said Jeaneen Zappa, Keystone Energy Efficiency Alliance executive director. “Renters, homeowners, and businesses all want affordable, reliable electricity, and these recommendations can help us to get it."

“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 and Pennsylvania-specific findings here.