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Pittsburgh Works Together Releases New Report: The PJM Grid In Peril: What Will Keep The Lights On?

On August 27, Pittsburgh Works Together, an economic development alliance of business and organized labor locals, released a new report-- The PJM Grid In Peril: What Will Keep The Lights On?

PWT said this timely and critical report examines the current state of the PJM electric grid system, highlighting the challenges it faces and the potential consequences if immediate action is not taken.

Jeff Nobers, Executive Director of PWT, emphasized the importance of this report in the broader energy discussion: "We believe this report is a vital contribution to the energy conversation in Pennsylvania and across the country. It uses facts and data to describe how things are, not how we wish they were. The findings are clear—our current path is unsustainable, and it's time to address the realities facing our electric grid."

The report likens the PJM electric grid to a favorite sweater—still functional but with a few loose threads. With careful work and attention, the grid can continue to provide the comfort and security needed. However, government policymakers in Washington and various states are pulling at these loose threads, threatening to unravel the entire network.

Key Findings of the Report Include:

-- Fossil Fuels and Nuclear Power Dominate: Fossil fuels, along with nuclear power, currently provide nearly all the power (92%) in the PJM grid. [59% of PA power comes from natural gas-fired power plants]

-- Limited Renewable Energy Production: Most PJM states generate less than 5% of their electricity from wind and solar power.

-- Reliance on Neighboring States: Many PJM states do not produce enough electricity to meet their own demand and must rely on states like Pennsylvania for their energy needs.

-- Government Policies Increasing Risk: Despite the growing reliance on electricity, government policies are pushing to close fossil fuel plants, with some states requiring 50% or more of their power to come from renewable sources.

-- Potential Supply Shortage by 2030: The combination of increasing demand for electricity, the closure of fossil fuel plants, and insufficient new reliable generation is "nearly certain" to lead to a supply shortage by 2030, if not sooner, according to PJM.

-- Critical Role of Pennsylvania: Pennsylvania is the keystone that makes PJM work. However, Governor Shapiro’s electricity proposals could further destabilize the PJM grid, which supplies power to 65 million people and more than 20% of the U.S. economy.

The report underscores the urgency of addressing these issues to ensure the stability and reliability of the PJM electric grid system.

Click Here for a copy of the report.

NewsClips:

-- The Center Square - Anthony Hennen: Pittsburgh Works Report: Red Tape, New Power Plant Delays Put PJM Electric Grid ‘In Peril’

-- Sen. Yaw To Introduce Bills To Establish PA Baseload Energy Development Fund Based On Texas Model; And Have One Permit For Power Plants [PaEN]

-- The Center Square - Anthony Hennen: Natural Gas Subsidy Plan Rolled Out To Stabilize Grid [Sen. Yaw’s Energy Development Fund ]

Resource Article Links - Electric Grid:

-- PJM Electricity Auction Price 9 Times Higher Than Previous Auction-- $269.92/MW-Day For 2025/26 Delivery Compared To $28.92/MW-Day In 2024-25; Extreme Weather Risk Big Factor [PaEN]

-- Natural Resources Defense Council: The Cost Of Slow-Walking Clean Energy Can Be Seen In Latest PJM Electricity Prices [PaEN]

-- PennFuture: Dramatic PJM Electricity Price Increases Due To Forced Outages Of Gas Power Plants; Huge Backlog Of New Generation Projects; Demand Growth Driven By Data Centers, Cryptocurrency Mining [PaEN]

-- Kleinman Center For Energy Policy: The High Price Of Failing To Transition To Clean Energy In PJM Footprint; Next PJM Auction Is In December - By John Quigley, Senior Fellow, Kleinman Center [PaEN]

-- Pennsylvania’s Electric Grid Is Dependent On One Fuel To Generate 59% Of Our Electricity; Market Moving To Renewables + Storage [PaEN]