U.S. Secretary of Energy Chris Wright and Secretary of the Interior Doug Burgum, vice-chair and chair of the National Energy Dominance Council (NEDC), respectively, joined Mid-Atlantic governors urging PJM Interconnection, L.L.C. (PJM), to temporarily overhaul its market rules to strengthen grid reliability and reduce electricity costs for American families and businesses by building more than $15 billion of reliable baseload power generation.
The initiative calls on PJM to conduct an emergency procurement auction to address escalating electricity prices and growing reliability risks across the mid-Atlantic region of the United States. The action follows a series of PJM policies over the years that have weakened the electric grid, including the premature shutdown of reliable power generation.
President Trump declared a National Energy Emergency on his first day in office, warning that the previous administration's energy subtraction agenda left the country vulnerable to blackouts and soaring electricity prices. During the Biden administration, PJM forced nearly 17 gigawatts of reliable baseload power generation offline. For the first time in history, PJM’s capacity auction failed to secure enough generation resources to meet basic reliability requirements. If not fixed, it will lead to further rising prices and blackouts.
“High electricity prices are a choice,” said Energy Secretary Chris Wright. “The Biden administration’s forceful closures of coal and natural gas plants without reliable replacements left the United States in an energy emergency. Perhaps no region in America is more at risk than in PJM. That’s why President Trump asked governors across the Mid-Atlantic to come together and call upon PJM to allow America to build big reliable power plants again. Our directives will restore affordable and reliable electricity so American families thrive and America’s manufacturing industries once again boom. President Trump promised to unleash American energy and put the American people first. This plan keeps that promise."
"For too long, the Green New Scam has left Mid-Atlantic families in the dark with skyrocketing bills,” said Interior Secretary Doug Burgum. “Today, under President Trump's leadership, the National Energy Dominance Council has come up with a solution to end these high costs, roll back the Biden administration’s policies of energy scarcity, and ensure we are powering the Mid-Atlantic and part of the Midwest’s future without charging its citizens a cent. This initiative will ensure we usher in the age of artificial intelligence with new power plants funded by the technology companies, not taxpayers, securing the steel of Pennsylvania, the manufacturing of Ohio, and the ships of Virginia. The Trump administration is keeping the lights on, the factories humming, and the American Dream affordable."
The direction includes:
- Providing long-term certainty for new power generation: Provide 15-year revenue certainty for new power plants to accelerate the development of reliable power generation.
- Protecting residential electricity rates: Protect ratepayers by limiting the amount existing power plants can be paid in the PJM capacity market.
- Ensuring data centers pay their fair share: Make data centers pay more for new generation than residential customers by allocating costs for any new generation procured to data center customers that have not self-procured new capacity or agreed to be curtailable.
- Prioritizing immediate grid stability: Take other steps to ensure more affordable, reliable, and secure electricity for the American people.
The recommendations propose temporary but critical measures to ensure American businesses, especially those in some of the nation’s most manufacturing-intensive regions, have the reliable power they need to operate. The measures will also help keep electricity prices affordable for residential customers, while addressing rising demand from data centers.
