PJM to extend capacity auction price cap for two years, Pennsylvania governor says

Feb 12 (Reuters) - Grid operator PJM Interconnection has agreed to extend a price cap on its capacity auctions for another two years following legal action by the state, Pennsylvania Governor Josh Shapiro said in a post on X on Thursday.

Shapiro said the move is expected to save 67 million Americans about $27 billion on their energy bills, bringing total savings for PJM customers to roughly $45 billion.

"Pennsylvanians can't afford higher prices," he added.

Last month, PJM Interconnection said it has begun discussions on creating a backstop auction, marking a step toward a procurement process designed to address rapidly growing power demand across its 13-state footprint.

PJM controls the power flow across 13 states largely in the Mid-Atlantic region, which includes the world's largest concentration of data centers in Virginia. Other states are also becoming burgeoning hubs for server warehouses.