After Pennsylvania's top regional transmission operation, PJM Interconnection, put out the call for feedback on new policies, Gov. Josh Shapiro wasn't shy about offering his two cents.

What's happening?

In a forceful response posted to the commonwealth's website, Shapiro pointedly went to bat for customers while demanding PJM deliver cheaper energy with higher reliability.

The biggest issue at stake is the so-called "price collar." This mechanism establishes a floor and a ceiling for energy prices. Shapiro noted that without the collar, PJM consumers would've paid $18 billion more than they did in the last two energy auctions.

The response argues for maintaining the collar in place through 2030 to allow PJM to make the necessary long-term changes.

"Until PJM fixes the broken systems that delay new power generation and drive up prices, Pennsylvanians should not be forced to foot the bill," Shapiro declared in a press release. "The price collar is protecting consumers, preventing unjustified price spikes, and buying time for real, long-overdue reform."

Shapiro said that PJM is at fault for a number of factors that have led to spiking energy costs. He cited interconnection and auction delays as internal problems while pointing out that reliability isn't improving with higher prices. External factors, such as supply chain constraints and the rise of data centers, were also cited.

The response said that consumers shouldn't have to pay through the nose as PJM navigates these challenges, nor should energy generators accrue massive profits in that time frame. It also disputed the notion that capping energy prices would have any impact on investment in new energy-generating infrastructure.

Why is Gov. Shapiro's stance important?

Throughout the country, rising demand for data centers that power artificial intelligence is straining the grid. Consumers are often bearing the brunt of the consequences with either hiked-up electricity costs or less reliable power.

Meanwhile, Shapiro is rightly limiting the latitude that companies have to raise prices without any measurable improvement in service. Putting the onus on companies to both clean up their act and proactively allow new power into the energy mix is an important move to shield consumers from profit-taking.

What's being done about rising energy needs?

Attacking red tape that blocks new energy projects from coming online is an important step that Shapiro said his office is committed to. Another key move might be ensuring that approved clean energy projects, including offshore wind ones, aren't stifled for political reasons.

Clean energy advocates are taking the Trump administration to court for trying to cancel or pause several approved projects. These projects can help provide long-term solutions to the rising demand for energy while creating jobs.

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