Governor Shapiro and PJM Interconnection have reached an agreement to control electricity prices in the PJM capacity market.

The deal implements price controls with a cap of $325 and floor of $175 per megawatt-day for the 2026/2027 and 2027/2028 capacity auctions.

This measure is expected to save consumers over $21 billion over two years. The agreement came after Shapiro filed a complaint with FERC regarding PJM’s auction design. PJM will now seek FERC approval through an FPA section 205 filing to implement these changes.

This agreement affects the entire PJM region, which covers 13 states and DC, and aims to balance reliable power supply with consumer protection.