HR 361 — A Resolution directing the Joint State Government Commission to study the costs and benefits of continued membership in the PJM Interconnection.

PRINTER'S NO.   2539

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



              HOUSE RESOLUTION
                 No. 361
                                                 Session of
                                                   2025

     INTRODUCED BY MATZIE, STEELE, FRANKEL, PIELLI, HILL-EVANS,
        HARKINS, HADDOCK, MALAGARI, SANCHEZ, NEILSON, RIVERA, CEPEDA-
        FREYTIZ, DELLOSO, PARKER, GALLAGHER, DONAHUE, BOROWSKI,
        CIRESI, KAUFFMAN AND REICHARD, OCTOBER 28, 2025

     REFERRED TO COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY AND
        UTILITIES, OCTOBER 28, 2025


                                  A RESOLUTION
 1   Directing the Joint State Government Commission to study the
 2      costs and benefits of continued membership in the PJM
 3      Interconnection.
 4         WHEREAS, The PJM Interconnection (PJM) plays a crucial role
 5   in the reliable and affordable operation of the electric grid
 6   and the wholesale electricity market as the Regional
 7   Transmission Organization (RTO) in the Mid-Atlantic Region; and
 8         WHEREAS, PJM operates the transmission system across
 9   Pennsylvania, 12 other states and the District of Columbia, with
10   approximately 65 million customers, and manages an energy
11   marketplace which establishes the energy and capacity prices for
12   Pennsylvania residential, commercial and industrial customers;
13   and
14         WHEREAS, Pennsylvania has been a part of PJM since 1927, when
15   the intent of its original members was to pool generation
16   resources for the economic benefit of its members and the
17   public; and
 1      WHEREAS, Resource adequacy by PJM has played a more
 2   significant role for Pennsylvania since 1997, with the enactment
 3   of the Electricity Generation Customer Choice and Competition
 4   Act, which restructured the electric industry, removing
 5   generation from jurisdiction under the Pennsylvania Public
 6   Utility Commission; and
 7      WHEREAS, Membership in PJM offered benefits such as enhanced
 8   reliability and access to a broader electricity market, but also
 9   potential impacts on electric rates and adequate generation
10   resources for this Commonwealth in the future; and
11      WHEREAS, Since joining PJM and through 2024, Pennsylvania
12   customers have enjoyed competitive energy prices and cost
13   savings from the PJM electricity market; and
14      WHEREAS, PJM conducts capacity auctions for the PJM planning
15   year that runs from June 1 to May 31 each year with the primary
16   objective of incentivizing power plant owners and operations to
17   develop, permit, construct and bring into operation new power
18   plants to meet the increasing electric demands of customers in
19   Pennsylvania and across PJM; and
20      WHEREAS, In July 2024, PJM conducted the capacity auction for
21   June 2025 through May 2026 planning year, which resulted in the
22   increase from $29.50 per megawatt (MW) day, for the period June
23   2024 through May 2025, to $270.35 per MW day, a 600% increase
24   from the prior year, effective June 2025 through May 2026, with
25   an estimated increase in prices paid by Pennsylvania customers
26   of $2.2 billion in capacity market payments to the power plant
27   owners in PJM; and
28      WHEREAS, As a result of this PJM capacity market cost
29   increase to Pennsylvania customers, Governor Shapiro, in
30   December 2024, filed a complaint against PJM at the Federal

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 1   Energy Regulatory Commission, arguing that the capacity prices
 2   were unjust and unreasonable; and
 3      WHEREAS, In February 2025, Governor Shapiro and PJM entered
 4   into a settlement agreement that created a floor price of $175
 5   per MW day and a ceiling price of approximately $325 per MW day
 6   for the next two capacity auctions of June 2026 through May 2027
 7   and June 2027 through May 2028; and
 8      WHEREAS, In July 2025, PJM conducted the capacity auction for
 9   the June 2026 through May 2027 period and announced that the
10   prices cleared at the ceiling price of $329.92 per MW day, a 22%
11   increase from the prior year, increasing costs to Pennsylvania
12   customers by an estimated additional $538 million above the
13   estimated $2.2 billion increase from the current period; and
14      WHEREAS, But for the ceiling price cap negotiated by Governor
15   Shapiro, the price would have cleared at $388.57 per MW day and
16   cost Pennsylvania customers an estimated additional $595
17   million; and
18      WHEREAS, The cumulative estimated increase in capacity costs
19   across the past two auctions is approximately $4.9 billion; and
20      WHEREAS, In December 2025, PJM is scheduled to conduct the
21   next capacity auction for the June 2027 through May 2028 period,
22   which will be subject to the floor and ceiling prices estimated
23   to cost Pennsylvania customers between $1.2 billion at the floor
24   and $2.8 billion at the ceiling; and
25      WHEREAS, Compared to capacity prices in May 2025, by May
26   2028, Pennsylvania electric customers will have paid an
27   estimated additional $6.1 billion to $7.7 billion under the PJM
28   capacity market; therefore be it
29      RESOLVED, That the House of Representatives direct the Joint
30   State Government Commission to undertake a comprehensive study

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 1   to evaluate the costs and benefits of this Commonwealth's future
 2   membership in PJM; and be it further
 3      RESOLVED, That the study objectives include the following:
 4            (1)   Assess the potential financial costs and reliability
 5      risks associated with membership in PJM, including, but not
 6      limited to:
 7                  (i)    membership fees, administrative costs and other
 8            costs paid to PJM;
 9                  (ii)    costs and fees to exit PJM;
10                  (iii)    any potential increase in electricity rates;
11                  (iv)    impact of price volatility created by PJM
12            markets;
13                  (v)    potential costs and risks for Pennsylvania to
14            join a new RTO; and
15                  (vi)    increasing risk of blackouts for consumers and
16            businesses in the future.
17            (2)   Analyze potential financial and reliability benefits
18      associated with membership in PJM, including, but not limited
19      to:
20                  (i)    adequate electric generation and transmission
21            infrastructure in the future and necessary reliability
22            improvements;
23                  (ii)    access to competitive electricity markets;
24                  (iii)    long-term cost savings for consumers;
25                  (iv)    economic development for this Commonwealth;
26                  (v)    reducing the risk of blackouts for consumers and
27            businesses in the future;
28                  (vi)    environmental benefits from renewable energy
29            integration;
30                  (vii)    maintaining Pennsylvania's position as a net

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 1             electricity exporter to other states; and
 2                   (viii)   potential benefits for Pennsylvania to join a
 3             new RTO.
 4             (3)   Evaluate the impact of PJM membership on various
 5      stakeholders, including residential, commercial and
 6      industrial customers;
 7   and be it further
 8      RESOLVED, That the study be initiated within 30 days of the
 9   adoption of this resolution, with a progress report submitted to
10   the General Assembly and made public within 90 days; and be it
11   further
12      RESOLVED, That the final report be completed and published
13   within 180 days, permitting public participation, including:
14             (1)   public hearings and forums;
15             (2)   solicitation of written comments from stakeholders;
16      and
17             (3)   availability of the study's findings on the
18      Pennsylvania Public Utility Commission's website;
19   and be it further
20      RESOLVED, That the study require that all data, methodologies
21   and findings be made publicly accessible to ensure transparency
22   and foster informed public debate; and be it further
23      RESOLVED, That the final report include the following:
24             (1)   detailed findings on the costs and benefits of PJM
25      membership;
26             (2)   recommendations for action based on the study's
27      conclusions; and
28             (3)   a summary of public input received during the study
29      process.



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