Following warnings from PJM Interconnection that blackouts could be on the horizon due to a lack of reliable electricity supply, state Sen. Gene Yaw (R-Bradford) wants to secure Pennsylvania’s energy future.
He announced Wednesday a plan to create a Pennsylvania Baseload Energy Development Fund to provide low-interest grants and loans for energy projects.
“We must play a more active role in incentivizing generation and addressing looming reliability challenges with market-based solutions,” said Yaw.
The Keystone State supplies almost 25 percent of baseload electric generation capacity to the PJM grid which supplies power to 13 states and the District of Columbia. Thanks to the state’s large natural gas deposits, it’s the second-largest net supplier of total energy to other states, according to the federal Energy Information Administration.
PJM officials fear that’s not enough to keep the lights on for the mid-Atlantic region. Its grid has enough confirmed, reliable power through the spring of 2026. After that, the supply gets shaky thanks to new Biden-Harris administration EPA emissions policies, which are expected to force the closure of coal-fired power plants and discourage the production of new natural gas generation.
Earlier this year the Independent Market Monitor, which keeps an eye on the PJM grid, predicted 58,000 megawatts of power generation may be shut down by 2030.
One other problem for PJM is the price of energy. Officials said auction prices jumped 700 percent last month due to lower electricity supply. “The market is sending a price signal that should incentivize investment in resources,” said PJM president and CEO Manu Asthana.
While environmentalists point to renewable energy sources, like solar and wind, as the solution to the power problem, there’s no evidence to back that up. PJM said wind and solar are too weather-reliant to be consistent providers of energy. The North American Electric Reliability Council agreed and said renewables are “more susceptible to long-term, widespread extreme events.”
Yaw sees the Pennsylvania Baseload Energy Development Fund proposal as a pathway to lower costs, more power, and jobs for residents. He also believes it will increase base load generation before PJM runs out of power.
The fund is based on the Texas Energy Fund, created after blackouts hit the state following a 2021 winter storm. Voters dedicated $5 billion in taxpayer dollars to provide low-interest loans to bring more gas-fueled plants online. Six months later, Gov. Greg Abbott and Lt. Gov. Dan Patrick announced plans to double funding because of how many companies applied for loans and increased energy demand.
Yaw is confident a Pennsylvania-based fund would also lead to increased energy industry growth. “Pennsylvania has the resources to continue our leadership. We just need to support the incentive,” he said in his memo.
It’s not known when Yaw will introduce the bill.
