Tackling the PJM Electricity Cost Crisis Report

Electricity customers in the PJM region (which spans all or parts of 13 Mid-Atlantic states and Washington, D.C.) are facing a looming cost crisis stemming from two major issues: (a) worsening barriers to building and connecting new generation resources needed to supply the electric grid, and (b) unprecedented increases in projected electricity demand. Accelerating new resource deployment will be necessary to reliably serve new and existing load without greatly increasing energy costs to electricity customers. Bringing online more clean energy resources will also be critical to reducing carbon dioxide emissions and meeting state climate goals. However, power companies in the region are grappling with several barriers that impede their ability to connect new resources to the grid, including PJM’s interconnection queue delays, local permitting and siting processes, and global supply chain challenges.

Working on behalf of Evergreen Action, Synapse conducted power sector analysis, bill impact analysis, and job impact analysis to understand the benefits of resolving these queue constraints to customers and residents in the PJM states. Our analysis shows that if PJM continues down its current path, residential electricity bills in the region are expected to increase by nearly 60 percent by the 2036–2040 period compared to historical levels. However, if PJM adequately implements interconnection reforms to enable the deployment of more cost-effective energy generation, largely comprised of clean energy sources, electricity bills are projected to decrease 7 percent by the same time period.