HARRISBURG –Sen. Gene Yaw (R-23), chair of the Senate Environmental Resources and Energy Committee, is calling on the Federal Energy Regulatory Commission (FERC) to change a proposal from PJM Interconnection that he says unfairly shifts energy costs onto Pennsylvania families and businesses.
In a letter released today, Yaw urged federal regulators to reform PJM’s plan to extend a region-wide “price collar,” a temporary cap on capacity prices in the electricity market. Yaw said while he supports short-term protections to prevent price spikes, the current proposal spreads costs evenly across all states, even when some states’ policies are driving higher demand and forcing power plant closures.
“Pennsylvania’s diverse energy mix powers our state and exports reliable electricity to our neighbors,” Yaw said. “We support temporary protections for consumers, but states that retire plants and drive-up demand must pay their fair share, not shift those costs onto Pennsylvania ratepayers.”
Pennsylvania is a major energy producer, with a mix of natural gas, nuclear and coal generation that not only powers the state but also exports electricity to neighboring states. Yaw argues that states choosing policies that reduce reliable generation or encourage large new energy users such as data centers should be responsible for the added strain they place on the grid.
Before the price cap, electricity prices in high-demand states like Maryland and Virginia reflected local supply and demand conditions. That system signaled where new investment was needed. Yaw said extending a flat, region-wide cap without changes would mask those price signals and require energy-producing states like Pennsylvania to absorb higher costs created elsewhere.
Instead, Yaw suggests a hybrid approach by keeping a base price cap to protect consumers in areas without grid constraints, while allowing higher charges in states where policy decisions have led to tighter supply and higher demand. That structure, he says, would hold states accountable without increasing prices for responsible energy producers and Pennsylvania consumers.
For more state-related news and information, constituents can visit Yaw’s website at www.SenatorGeneYaw.com or follow him on Facebook and X @SenatorGeneYaw.
CONTACT:
Elizabeth Weitzel
717-787-3280