At a multistate conference for PJM last week, some governors again pushed for governance changes to the nation’s largest competitive wholesale power market. But by deflecting blame toward PJM for rising electricity prices, these states are ignoring the role that their own policies have played in tightening the supply of reliable electricity.
In an op-ed published by the Delaware Valley Journal, America’s Power President and CEO Michelle Bloodworth discussed how these states have been hurting the electricity market.
“These states have adopted policies that undercut electric reliability, including the premature shutdown of reliable power sources like coal and nuclear plants, the establishment of unrealistic renewable mandates, and the failure to require new industrial loads like data centers to secure sufficient generation resources,” she wrote.
Our nation’s electric grid has traditionally been governed by non-political organizations like PJM that prioritize reliability. Too often, states enact politically motivated energy policies that then put additional strain on the grid. Injecting political agendas into PJM’s grid management risks making this problem worse. Many state policymakers agree.
Prior to last week’s PJM conference, Pennsylvania Representative Martina White, caucus chair for the state’s House Republican Caucus, released a statement saying, “PJM has repeatedly warned that our country is not producing nearly enough electricity to keep up with demand. Continuing to ignore these warnings in favor of prioritizing unworkable green energy policy over reliable electricity generation is damaging our grid and costing consumers, which was all too evident in June when electricity prices rose nearly 20 percent for the second consecutive year.”
One of the challenges with many state policies is that they have prioritized the premature retirement of baseload coal-fired power plants. But as Bloodworth explained in her op-ed, “Coal and other dispatchable resources should not be viewed as obstacles to the energy transition. They are the bridge that ensures reliability until other resources can provide the 24/7 power needed to sustain our economy.”
Playing politics won’t ensure electric reliability, but sound policies will. These governors should look toward how their own policies have exacerbated the current reliability crisis, and how reliable baseload power like coal can be part of the solution.