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As power bills rise, governors want more control over the largest grid in the United States.

The governors of over a quarter of U.S. States are seeking greater control of the nation's largest power grid, PJM Interconnection. Electricity prices are rising as the demand for data centers driven by AI outpaces new supply.

The rising power bills of PJM (which operates the grid that covers 13 states plus the District of Columbia), or one fifth of Americans, has led to a backlash in the political arena over the past year, and some governors have threatened to abandon the regional grid.

A person familiar with plans said that the group of state leaders will announce the "PJM governors' collaborative" during a summit on Monday in Philadelphia. The goal is to promote their interests within PJM. PJM is a member-run organisation in which the states have no vote.

The source stated that "historic reforms will be discussed at the summit by the PJM Governors' Collaborative to give states a greater role in future decision-making."

The soaring prices at PJM are due to a combination of factors including the high cost of producing and transporting electricity, and a surge in data center demand from Big Tech. PJM has the highest concentration of data centers that are energy-intensive in the world.

In the region, power bills include capacity payments. These are payments made to operators of power plants to ensure they are running during times of high demand in order to avoid blackouts. These payments, which are determined by energy auctions every year, have increased by 1,000% in the last two auctions due to the expected rise in data center demand and the stagnant power supply.

PJM's board of directors is made up of transmission line owners, independent power plant operators and other members who have the right to vote.

While the states do not have a say in PJM, they still exerted influence over it. Pennsylvania Governor Josh Shapiro was successful in his efforts to set a ceiling and floor price for PJM’s latest capacity auction.

A source said that governors want to play a formal role in shaping PJM, which could be modeled on similar groups in the Midwest and New England grids.

Shapiro, who runs the biggest electricity-producing state in the PJM region, plans to discuss issues including the PJM stakeholder process, market reforms, connecting new power supplies faster and increasing transparency in PJM, according to a release by the governor's office.

(source: Reuters)