PJM Extends Electricity Price Cap to Save Customers $45 Billion

Grid operator PJM Interconnection agreed to extend a cap on wholesale electricity prices for two additional years, maintaining a limit of $325 per megawatt-day for the 2028-2029 and 2029-2030 capacity auctions. The decision follows a collaborative effort between President Donald Trump and a bipartisan group of 13 governors, led by Pennsylvania Governor Josh Shapiro and Maryland Governor Wes Moore, to shield consumers from rate hikes caused by the rapid growth of AI-driven data centers.

The extension is projected to save 67 million customers an additional $27 billion, bringing total estimated savings to $45 billion over four years. PJM will file amendments with the Federal Energy Regulatory Commission to formalize the price limit.

State leaders framed the move as a temporary measure while broader market reforms are implemented. These reforms include new rate structures designed to shift the cost of grid upgrades from residential utility customers to large-load technology companies. Maryland is also pursuing strategies that would require data center developers to provide their own power generation to ensure grid reliability without increasing costs for residents.