By Sen. Jarrett Coleman
16th Senatorial District
We are facing a looming energy crisis with rising demand for electricity and retiring power plants in the market served by the PJM electricity transmission organization.
Power plants are being retired before new ones are built, and we’re facing massive growth in electricity demand. Without action now, we face potential power shortages, and electric service will become both less reliable and more expensive. Pennsylvania stands at an energy crossroads.
The recent announcement from PJM — a 22% surge in capacity market prices — should serve as our call for action. For countless families and small businesses, this means yet another $5 to $6 tacked onto monthly energy bills, with the prospect of paying more and getting less for it.
My constituents and Pennsylvanians more broadly, cannot afford to be nickeled-and-dimed by ever increasing electric bills.
The root of this crisis is clear, energy demand is rapidly outpacing supply. Our growing adoption of electrification, the rise of electric vehicles, industrial expansion and a boom in data centers have all helped to fuel this demand. These developments bring economic opportunity, jobs and tax revenue to our commonwealth — but they also bring the need for more power supply.
Unfortunately, new power generation simply isn’t keeping up. The most recent PJM capacity auction for 2026-27, which is the process that determines the price generators are paid to provide energy supply, cleared at $329.17 per MW-day — a 22% jump from the previous auction, already a massive leap at $269.92.
To put this in perspective, that’s an eleven-fold increase compared with prices from just a few years ago. If nothing changes, the average Pennsylvania customer could be paying an extra $20 per month in supply costs within a year.
Meanwhile, the looming gap between supply and demand persists. Few new resources are coming online, reliability isn’t improving, and we may not have enough power to meet known demand within the next five to six years. As it stands, Pennsylvanians are losing the race — and paying the price.
But it doesn’t have to be this way. Pennsylvania can — and must — take control of its energy destiny now, before the crisis grows worse. That’s why I’ve introduced SB 897, a commonsense, market-friendly solution designed to ensure reliable, affordable power for every Pennsylvanian.
SB 897 empowers our regulated electric distribution companies to invest in and operate generation assets when there’s a clear supply shortfall, ensuring that our state’s abundant energy resources are put to work for the people.
And, most importantly, any net revenues from these operations will go directly back to customers while helping to stabilize prices and safeguard reliability. Put simply, if enough new electric generation projects come online to avoid a shortfall, then nothing changes. If our current power producers cannot keep up with demand, my legislation will open other avenues for more supply to be built.
Let me be clear: SB 897 doesn’t replace the market — it works alongside it, adding a layer of security and flexibility when we need it most. In a time of mounting uncertainty, we cannot afford to leave any solution off the table. Pennsylvania’s health, safety, and economic well-being depend on a robust, reliable energy supply.
For the sake of our communities, our businesses, and every hardworking family across the commonwealth, it’s time to act. Let’s pass SB 897 and protect Pennsylvania’s energy future — before the lights go out.
Sen. Jarrett Coleman, a Republican, represents the 16th Senatorial District in Lehigh and Bucks counties.
Source: Berkshire mont
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