NEW ANALYSIS: Households Will Pay Thousands More for Electricity Over the Next Decade without New Clean Power Sources in PJM

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NEW ANALYSIS: Households Will Pay Thousands More for Electricity Over the Next Decade without New Clean Power Sources in PJM

• Without new clean energy development, ACP estimates that ratepayers across nine PJM states would pay an additional $360 billion over the next ten years.
• The average residential household would see $3,000 to $8,500 in additional electricity costs over the next decade.

WASHINGTON, D.C., January 21, 2026 - Electricity demand across the PJM Interconnection region is growing at an unprecedented pace, driven by rapid expansion of data centers, advanced manufacturing, electrification, and broader economic growth. A new analysis by the American Clean Power Association (ACP) finds that without timely deployment of significant new clean energy resources, Mid-Atlantic and Midwest states face serious reliability risks and dramatically higher electricity costs over the next decade.

There is a growing mismatch between demand growth and new conventional generation that presents an immediate challenge to grid reliability and affordability across the PJM region. The cost impacts are substantial. Without new clean energy development, ACP estimates that ratepayers across nine PJM states would pay an additional $360 billion over the next ten years, driven primarily by higher wholesale electricity prices. The average residential household would see $3,000 to $8,500 in additional electricity costs over the next decade.

The issue of energy affordability in the Mid-Atlantic has now moved squarely into the political spotlight. Just last week, both the Trump Administration and bipartisan group of state governors called on PJM to take steps to address this issue.

"To keep the lights on and power economic growth, PJM needs resources that can be built quickly, operate reliably, and protect customers from surprises on their electric bills," said John Hensley, Senior Vice President of Markets and Policy Analysis at ACP. "Our analysis shows that clean energy sources and storage are uniquely positioned to meet near-term demand growth while lowering costs and strengthening reliability for consumers."

To evaluate system-wide impacts, ACP modeled PJM under two scenarios: a base case, where all generation resources are available, and a no new clean power case, where no new wind, solar, or storage projects are added beyond those already under construction or required by law. The results show stark differences.

In the "no new clean power case," PJM becomes increasingly reliant on aging, higher-cost fossil fuel generation and imported electricity. Net power imports rise nearly 300% by 2035, increasing exposure to fuel price volatility and operating hours with extremely high electricity prices. The analysis also finds elevated reliability risks during peak demand periods, when the system is most vulnerable.

Clean energy resources-including wind and solar-can be deployed more quickly and operate at lower long-term cost. On average, new electricity loads can be constructed within one to two years, while new natural gas power plants typically require five to seven years to permit and build-and are currently constrained by limited turbine supply. Clean energy resources can help meet rising demand, support resource adequacy, and stabilize wholesale electricity prices during a critical period of load growth.

"These findings make clear that delaying clean energy deployment comes at a steep cost," Hensley added. "Timely investment in wind, solar, and energy storage is essential to maintaining reliability, reducing dependence on imports, and protecting families and businesses from sharply higher electricity bills as demand continues to grow."

The American Clean Power Association (ACP) is the leading voice of today's multi-tech clean energy industry, representing energy storage, wind, utility-scale solar, clean hydrogen, and transmission companies. ACP is committed to meeting America's energy and national security goals and building our economy with fast-growing, low-cost, and reliable domestic power.

Learn more at cleanpower.org, and follow ACP on LinkedIn, Instagram, Facebook, and X.