The Grid Is Warning Pennsylvania

 Pennsylvania is facing a serious power shortage, as highlighted by PJM Interconnection's recent capacity auction results. The energy crisis is reflected in low new power generation, high prices, and regulatory challenges. This summary outlines the current state of Pennsylvania's energy supply and possible legislative responses.

1. Power Shortage: Pennsylvania's power situation is critical, with a recent PJM auction revealing a deficit of over 6,600 megawatts, enough to power approximately 6.6 million homes. Only a small amount of new generation was added, while prices hit the maximum, indicating a lack of supply.

2. Regulatory Difficulties: There is ongoing blame concerning the shortage. Some attribute it to PJM's backlog, whereas others point to Pennsylvania's complicated permitting process and regulatory framework. Neighboring states with more business-friendly rules are attracting new energy investments.

3. Comparative State Actions: States like Texas are successfully addressing similar power issues by investing substantially in generation capacity and creating supportive policies, thereby enhancing reliability. Texas has introduced programs to expedite the construction of power plants.

4. Proposed Legislation (SB 1106): State Senator Gene Yaw proposed legislation to update tax credits for baseload power generation, which could help attract private investments without overhauling the market. This practical approach builds on existing tax incentives that have previously driven successful investments in the state.

5. Natural Gas Advantage: Pennsylvania is rich in natural gas resources. Ensuring the construction of more power plants could leverage this advantage, but policies must be favorable to encourage development.

6. Policy Changes: Recently, Pennsylvania decided to exit the Regional Greenhouse Gas Initiative (RGGI), emphasizing the importance of affordability and reliability in energy policy.

Pennsylvania's energy crisis demands immediate attention to revamp its policies and attract new investments while learning from successful examples in other states. Proposed legislation could provide a pathway for enhancing the state's energy infrastructure and reliability.

https://amgreatness.com/2026/01/15/the-grid-is-warning-pennsylvania/