PENNSYLVANIA, November 11 - WHEREAS, Resource adequacy by PJM has played a more

significant role for Pennsylvania since 1997, with the enactment

of the Electricity Generation Customer Choice and Competition

Act, which restructured the electric industry, removing

generation from jurisdiction under the Pennsylvania Public

Utility Commission; and

WHEREAS, Membership in PJM offered benefits such as enhanced

reliability and access to a broader electricity market, but also

potential impacts on electric rates and adequate generation

resources for this Commonwealth in the future; and

WHEREAS, Since joining PJM and through 2024, Pennsylvania

customers have enjoyed competitive energy prices and cost

savings from the PJM electricity market; and

WHEREAS, PJM conducts capacity auctions for the PJM planning

year that runs from June 1 to May 31 each year with the primary

objective of incentivizing power plant owners and operations to

develop, permit, construct and bring into operation new power

plants to meet the increasing electric demands of customers in

Pennsylvania and across PJM; and

WHEREAS, In July 2024, PJM conducted the capacity auction for

June 2025 through May 2026 planning year, which resulted in the

increase from $29.50 per megawatt (MW) day, for the period June

2024 through May 2025, to $270.35 per MW day, a 600% increase

from the prior year, effective June 2025 through May 2026, with

an estimated increase in prices paid by Pennsylvania customers

of $2.2 billion in capacity market payments to the power plant

owners in PJM; and

WHEREAS, As a result of this PJM capacity market cost

increase to Pennsylvania customers, Governor Shapiro, in

December 2024, filed a complaint against PJM at the Federal

20250SR0188PN1304 - 2 -

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30