Governor Spanberger Joins Bipartisan Group of Governors Continuing to Push PJM to Protect Ratepayers and Lower Energy Costs for Virginians

RICHMOND, VA - Governor Abigail Spanberger yesterday joined a bipartisan coalition of governors in calling on PJM Interconnection - the operator of the nation's largest electric grid - to prioritize energy affordability and reliability while ensuring that data centers pay their fair share for the energy and infrastructure they require.

In a letter sent to PJM leadership, Governor Spanberger and the governors outlined a consumers first framework for PJM's new reliability backstop auction. The Governors reiterated that regional grid operators were established to "promote efficiency in wholesale electricity markets and to ensure that electricity consumers pay the lowest price possible for reliable service."

"As we move Virginia into our energy future, we are working to make sure that our energy grid remains the reliable backbone of our economy, not a burden on Virginia ratepayers," said Governor Abigail Spanberger. "PJM must continue to collaborate with the Commonwealth to keep affordability at the forefront and deliver the lowest possible electricity rates for Virginians through the pursuit of innovation."

In the letter, Governor Spanberger called on PJM to protect Virginia ratepayers by:

• Ensuring Data Centers Pay Their Fair Share: PJM's current reliability strain stems primarily from rapid data center expansion. The letter calls on PJM to make sure data centers are paying for new capacity costs while accounting for different utility models across states, including in Virginia where the SCC has developed a new rate class for data centers.
• Advocating for Homegrown Clean Energy: PJM should take a technology-neutral approach that will include any resources that can help keep the grid reliable. By keeping all options on the table, these new power generation tools will help communities reduce or shift their energy use.
• Protect Ratepayers from Stranded Costs: PJM should put in place robust safeguards so everyday customers do not end up paying extra if these large energy users fail to cover their own costs or if PJM buys more power than needed, which will help keep costs from rising.

Click here to read the full letter.

BACKGROUND

By focusing on ratepayer protections and supporting a diverse array of energy resources, Governor Spanberger is committed to building a reliable, affordable, and sustainable energy future for all Virginians. Over the last two weeks, the Governor has signed legislation to protect Virginia ratepayers from shouldering the cost of new energy infrastructure investments and require energy providers to develop voluntary demand flexibility programs for high energy demand customers.

The PJM Governor's Collaborative is a bipartisan coalition of Governor's from PJM's 13 states and Washington, D.C. that work together on issues of grid governance, energy affordability, and market reform. The Collaborative aims to ensure that elected leaders representing the 67 million people served by PJM have a stronger voice in decisions that affect household energy bills and grid reliability. The Collaborative has pushed for ratepayer protection efforts at PJM, like extending the capacity market price collar - a move which has already saved ratepayers $13 billion dollars.

# # #