Employees monitor the grid conditions in the main control room at PJM Interconnection in Valley Forge, PA. Loan: PJM Interconnection
Governor Josh Shapiro joined a double -sided group of leaders in nine states who called for a greater contribution to the management of the PJM electrical network operator. This movement occurred when PJM announced an raise in energy costs for the second year in a row.
Pure energy experts have stated that rising electricity prices in order to meet the peak requirements of the PJM region in the 13-state there is a clear signal for generators to build recent capacities, especially renewable sources, such as wind and solar farms.
PJM, however, slowly granted approval. In the face of the attack of recent energy projects seeking permission to connect to the network, she closed the queue to recent applications in 2022.
“When prices increase, it is to send a signal to energy developers:” We need more supply. ” But at the same time, PJM maintains a large red sign for energy programmers, “said Jon Gordon, politics director at Advanced Energy United.
As the demand for electricity increases, as the electrification of transport and industry increases, in combination with the spread of hungry power centers driven by the progress of artificial intelligence, consumers feel a pinch.
“After a closed queue, new energy projects in the region cannot connect to connect to the transmission network, which means that households and companies pay for a price signal to which the market cannot even react,” said Gordon.
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The elimination of tax breaks for renewable energy sources in the budget act on the agreement, President Donald Trump signed at the beginning of this month, and his executive order in order to end the preferences of federal agencies regarding wind and solar energy solar benefits.
This leaves a mesh more dependent on huge energy stations.
“It has been proven that solar energy, batteries and energy efficiency help reduce this peak energy consumption, maintaining a reduction in prices for all consumers by reducing the amount of costly (and dirty) power needed from these generators,” said Pilar, noticing that technology is necessary to prevent obscurity at the review of New England during the last heat wave.
As demand increased, said PJM, existing power plants were withdrawn as a result of federal and state policy to reduce the apply of fossil fuels. Approved 46,000 megawats with a recent generation capacity. However, the project owners were slowly proceeding on the factors, including the availability of equipment, financial challenges and state and local permits, said PJM Wa statement.
Shapiro governors, republican and democratic nine states sent a letter to the PJM Governors’ Council Last week, the statement that the incapacity for the organization to effectively combine recent generation skills and conducting long -term planning cost the region thousands of jobs and billions of recent investments that have passed elsewhere.
“It’s time for real network reforms that allow our region to compete at business speed and build a system that provides affordable, reliable strength for people and companies that PJM serves”, ” Shapiro said In the statement last Thursday. “I hope that this historical cooperation between the PJM countries will provide the possibility of supporting a stronger, cooperation of PJM and 67 million people, which is used jointly by a forceful energy future.”
The letter states that the deficiencies of PJM threaten the reliability and price affordability of electricity supplies needed by consumers.
“We are deeply concerned that the PJM reaction was typical by detention, inconsistent steps and growing internal conflicts in the stakeholder community,” we read, noticing the “sudden termination” of two board members and the inevitable departure of the CEO of PJM Manu Asthana.
Asthana, who has been organizing for five years, Announced in April that he would give up returning with his family to their home in Texas. Two members of the board were not re -elected at the meeting of the authority in May.
He called the Governors’ letter PJM managers Taking actions to restore confidence in the organization by appointing “distinctive, widely respected people” to open board places. In the letter he asked for a meeting with the Management Board’s nominational committee to discuss the proposed list of candidates.
The letter was said that representatives of the governors, including the Governor Illinois Jb Pritzker, Kentucky Governor Andy Beshear, Governor of New Jersey Phil Murphy and Virginia Gov. Glenn Youngkin will take part in the board meeting on Wednesday and will be available to discuss the proposals.
David Mills, chairman of the management board of PJM, said in response to the letter that he would reserve time during the meeting so that the representatives would share the prospects of governors with the entire board.
Shapiro spokesman refused to comment on the meeting on Wednesday.
One legislator from Pennsylvania also called for reforms to improve the transparency and responsibility of PJM. While the managers’ council is independent of generators and electrical companies that are members of PJM, member companies vote privately in committees where they will consider the principles that the management board will consider.
Rep. Chris Rabb (D-D-Liladelphia) proposed legislation that would require members of the reports of the public Utoms committee in Pennsylvania. The act is waiting for activities in the House Energy Commission.
“Voices at a higher level are sometimes public, but in the secret of the lower levels they are often caused before the politician is raised to a higher level,” Rabb said in a note seeking components. “Simply put, one should not allow a secret when our health and the future of our world depends on it.”
PJM, based in King of Prussia, runs an electric network that connects energy stations with local electrical companies from Illinois to New Jersey and from Pennsylvania to North Carolina. He is responsible for ensuring that there is enough electricity when the demand for the top is the hottest and coldest in the year.
As a result of the annual wholesale auction of PJM wholesale abilities, electricity producers announced on Tuesday evening will receive USD 329.17 for a megawat-day to ensure capacity when the peak demand gets in 2026 and 2027. This is the maximum rate approved by federal regulators. Megawat-Day is more or less enough electricity to power up to 900 houses for one day.
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This is an raise of 22% compared to the agreed price at the auction of last summer, which meant that double increases in consumer electricity costs, which began last month. PJM noticed that the wholesale price of electricity is a relatively miniature share of consumers electricity bills, and this year’s price would probably cause an raise of 1.5% to 5%.
Shapiro administration sued PJM after last year’s capacity auction and reached Settlement in January, Later approved by the Federal Energy Regulatory Commission, in which PJM agreed to reduce the maximum offer that generators can offer.
In a statement on Tuesday, the administration threw the auction results on a decrease in costs for electricity clients by $ 8.3 billion. In Pennsylvania, 13 million electricity consumers will save an average of $ 116 the following year, said the governor’s office.
The State Chairman of the Commission for Public Users Stephen Defrank said that the raise in wholesale costs would be closer to 36% without a settlement.
“Between the last two capacity auctions, payers in Pennsylvania and all PJM pay billions of dollars with a minimum new generation on the horizon,” said Defrank, adding: “The only real, long -term solution to the strict market conditions is to add new supply from all types of producing resources.”
