00:03 - Good morning.

00:04 - Welcome to the National Constitution Center.

00:07 - My name is Jacob Pickel in the Pennsylvania governor's office.

00:12 - Thank you for joining us

00:14 - for the summit on the state of Georgia.

00:17 - Now we have a mission for the next eight hours to find new

00:22 - and creative ways to build a grid that is not only more reliable,

00:27 - but also more affordable, transparent

00:30 - and fair.

00:38 - That means a grid

00:39 - that benefits everyone from the generators and companies

00:44 - that create and transmit our power to the families paying bills.

00:48 - The power.

00:50 - As the day I hear adorns

00:52 - and this region positions itself to be a leader in that.

00:56 - This mission is more urgent than ever,

00:59 - and we know the answers to the questions.

01:01 - Not with PJM alone, but also with leadership by the state.

01:07 - Here in

01:08 - Pennsylvania, we're fortunate to have the thoughtful and action

01:12 - oriented leadership of my boss, governor Josh Shapiro.

01:25 - From his first days in office.

01:26 - Governor Shapiro has been focused on improving PJM in ways

01:30 - that benefit Pennsylvania and the region.

01:34 - Over the last two years, Governor Shapiro has laid out short comings in detail

01:39 - to ten public letters that describe

01:42 - problems and offer solutions.

01:45 - He fought and won a major victory over consumers earlier this year,

01:50 - preventing over $16 billion in

01:53 - excessive price increases.

02:00 - These are not your words or intentions.

02:02 - They are our record of action.

02:05 - Now he's here to challenge us and to lead us in

02:08 - building a more stable, more affordable and more reliable electric grid.

02:13 - Please join me in welcoming one of our region's great energy leaders.

02:17 - Governor Josh Shapiro.

02:30 - Good morning.

02:33 - I want to welcome you all to Philadelphia.

02:35 - Let me begin by thanking Jacob for that kind introduction.

02:39 - He has done an incredible job gathering all of you

02:43 - here and setting up what I think it's going to be

02:47 - a critically important and a really positive discussion.

02:51 - I understand that this meeting is attracting

02:55 - some attention, and one of the media outlets reported that it is, quote,

02:59 - the hottest ticket in town.

03:03 - Actually, hold on.

03:05 - The full quote is the hottest ticket in town for energy walks.

03:10 - I want to make sure I've got that.

03:12 - So I guess that makes us energy locks.

03:14 - And it is a hot ticket because it gives us an opportunity to have

03:18 - a meaningful discussion and quite frankly, I think is long overdue.

03:23 - It was here in Philadelphia 98 years ago that PJM was founded.

03:28 - And so it's fitting that we come back here today

03:31 - for this conversation on the future of PJM.

03:35 - What began as a partnership between utilities in Pennsylvania

03:39 - and New Jersey has, of course, grown over the last century to encompass

03:43 - 13 states to provide energy for 67 million Americans.

03:50 - But in 98 years, I don't think there has ever been a meeting like this.

03:55 - Bringing together representatives from all 13 states

03:59 - that make up the PJM grid and allow us to get around the table,

04:03 - take stock of the challenges that this grid faces,

04:08 - and to think creatively

04:11 - about solutions for our collective future.

04:14 - You are making history by being here

04:16 - and by participating in this important conversation.

04:20 - I want to say that I am especially grateful for your participation

04:24 - of several of my fellow governors, who I know will join us

04:28 - virtually as this conversation goes on today, tomorrow.

04:33 - I think it is important to note that because Republicans

04:36 - and Democrats will be represented in the conversation here,

04:40 - it is critical that this not be a partizan exercise,

04:43 - but this be an exercise that is something that brings us together.

04:48 - I also want to make special note of the presence of Steve,

04:51 - the friend and chairman of the PUC, who joins us here today.

05:02 - Steve does a great job for us in Pennsylvania.

05:04 - I'm pleased to be here as an active participant in this conference.

05:08 - Thank you. Steve.

05:10 - Look, we are here because it is time to think back,

05:14 - and it is time to work together to reimagine the future of PJM.

05:19 - Build a grid that works better for Pennsylvania and for each of our states.

05:23 - Let's face it.

05:24 - Change is needed to keep energy costs low.

05:28 - Bring new energy generation onto the grid more quickly.

05:32 - Meet the needs of the nearly 70 million Americans who rely on this grid

05:36 - for everything from running a business to keeping the lights on at home.

05:41 - We've gathered here today and what I consider to be an inflection point.

05:47 - PJM staff led by Arno, and we're grateful that he is with us today

05:51 - doing important work every single day for us,

05:55 - for neighbors, for power across our states, ensuring that

05:58 - homes, businesses, power supply that they can rely on

06:02 - even in the most challenging conditions over the past 30 years.

06:07 - Our states have given PJM more and more responsibility.

06:12 - We can now account for PJM to not a coordinate the flow of electricity,

06:17 - but to ensure that we have enough power plants to serve the grid.

06:21 - But over the last two years, let's be frank.

06:24 - GM has been too slow to connect the new generation through its queue

06:28 - and to join the created the time where demand for energy is going up.

06:34 - PJM now has a d-minus rate of speed of its interconnection

06:39 - to those delays, threatening the very

06:42 - the very energy projects PJM says we need.

06:47 - It also slows the economic growth of our respective states.

06:52 - This slow, reactive approach is no longer working

06:56 - for our states and communities that we serve.

07:00 - And it's all happening at a time when the Trump administration

07:03 - is cutting funding for new energy projects that are almost complete.

07:07 - And at a time when we need more energy generation,

07:11 - the result has been dramatically increased.

07:14 - Prices in PJM capacity auctions.

07:18 - And that is that the higher energy bills for consumers across the grid.

07:23 - As governor of this great Commonwealth, I'm privileged to represent

07:26 - 13 million Pennsylvanians.

07:28 - And I can tell you we can't afford never ending

07:31 - price increases because of PJM policies.

07:35 - I think my fellow governors, for all represented here today would agree.

07:40 - Yet, despite these significant challenges, there is actually no forum

07:45 - for elected officials from our 13 PJM states

07:49 - to have a direct say in decisions in other parts of the country.

07:54 - States have far more representation in the governance of their shared grid

08:00 - to the largest grid in the nation, to have the fewest avenues for consumers

08:05 - and their elected representatives to be heard is unacceptable and outdated.

08:11 - Our state and our citizens deserve better, especially from an institution

08:15 - that was founded right here in Philadelphia, the birthplace

08:19 - of democracy and citizen participation.

08:23 - Let me give you just one example of why I consider this to be a problem.

08:27 - Last year, when I have landed at the 2025 auction, would be potentially

08:31 - the highest ever.

08:32 - I immediately objected because it would cost ratepayers

08:36 - about $20 billion a year in additional costs.

08:40 - We still wouldn't have gotten the power plants we need through PJM process.

08:45 - That was unacceptable to me, and I told PJM that I spent months

08:49 - working behind the scenes with PJM leaders to try and find a different path

08:53 - forward, one that spared ratepayers the unnecessary rate hikes

08:58 - and did more to bring new power plants online faster.

09:02 - When we couldn't come to agreement, I soon

09:05 - and a bunch of the state

09:06 - representative here today ultimately join me.

09:10 - I'm grateful for their participation.

09:13 - The governors of America, Delaware, new Jersey and Illinois

09:16 - saw that we were standing up for consumers and joined

09:19 - us and their strength in numbers.

09:22 - One thing I learned over the years is Pennsylvania

09:25 - as attorney general and now as governor is you've got to keep talking.

09:29 - Even after a suit is filed,

09:32 - because if you keep talking, you may eventually find a way forward.

09:36 - And that is what we did.

09:38 - As a result of our efforts, we worked together with PJM leadership

09:42 - to reach agreement

09:43 - that staved off the kind of price increases that they were talking about.

09:47 - We saved ratepayers about $16 billion over the next two years.

09:51 - That's a huge win for consumers in our respective states.

09:56 - But hear me on this.

09:57 - It shouldn't take us going to court to have our voices and the voices of 67

10:02 - million Americans who are served by the PJM grid

10:06 - heard by PJM leadership.

10:09 - We need to be in the room to make sure our citizens have a seat at the table.

10:14 - Now, I want to be very clear, even as I work to protect consumers,

10:18 - I also know that we need to bring more power online.

10:22 - That's why I pushed PJM to expedite

10:24 - the interconnection of new energy generators here in Pennsylvania,

10:28 - including the Crane Clean Energy Center, which will be ready to connect to the grid

10:33 - a year earlier than originally expected.

10:37 - I am an all of the above energy governor, and with a commonsense

10:42 - energy strategy inspired by Ben Franklin, who's hanging out in that room.

10:45 - By the way, you should check him out when you're done.

10:48 - Ben Franklin, inspired our lightning plan,

10:52 - and we're doing our part by building more power in this Commonwealth,

10:57 - creating more good paying jobs, and delivering long

10:59 - term savings for the good people of Pennsylvania.

11:03 - We have made important progress here in Pennsylvania

11:06 - and in states all across the region, and we've seen what we can accomplish

11:11 - when governors speak in a unified voice and make our concerns heard.

11:17 - I believe we need to do more of that.

11:20 - I look forward to working more closely

11:22 - with my fellow governors of both parties on this effort.

11:26 - I'm hopeful that one outcome of this conference will be greater

11:30 - collaboration between our states to address the serious problems

11:34 - that PJM has and a greater voice in this process.

11:39 - This system needs real reform.

11:43 - And that

11:44 - that is what I know has brought

11:47 - all of you here today to discuss.

11:50 - I understand we've got different perspectives

11:52 - when it comes to these problems.

11:55 - I'm on the government side trying to make sure Pennsylvania

11:57 - consumers have reliable access to affordable energy.

12:01 - Every single time they flip that switch in their home or at work.

12:05 - We've asked you all to come to the table here today,

12:09 - because each of us has a different piece of that puzzle.

12:13 - But right now, I think we're all looking at the same picture.

12:17 - We can't keep doing what we've been doing in this rapidly

12:20 - changing world and expect it to work any longer.

12:24 - It's not working anymore.

12:26 - We've come to that conclusion, and it is time to get serious

12:30 - about making significant reform for PJM.

12:34 - I will not stand by for a status quo that perpetuates slow downs

12:40 - and rising costs in Pennsylvania.

12:43 - We are moving at the speed of business, and since PJM can't move fast enough,

12:49 - we need to chart a new course

12:51 - that delivers more for the good people of Pennsylvania.

12:55 - Listen, Pennsylvania is the second largest

12:57 - net energy producer in the entire country, and by far

13:01 - the largest generator of energy in the entire PJM network.

13:06 - If PJM refuses to change,

13:10 - we will be forced to go in a different direction. And

13:15 - that will have a significant impact here in this region and across the country.

13:20 - To be clear, that is not a path that I'm eager to chart,

13:24 - but I'm not willing to stand idly by

13:27 - and let PJM dictate our future time

13:31 - for real action led by the States is right now.

13:37 - For nearly a century,

13:39 - Pennsylvanians have trusted the PJM grid to keep the light on.

13:43 - We believe in the promise of programs markets.

13:47 - PJM was a success story

13:50 - born right here in Pennsylvania.

13:53 - I want it to be that again.

13:56 - But for that to happen, we've got to really grapple

13:59 - with some serious questions about how this market should work

14:02 - and how it can be governed more effectively,

14:06 - how we can bring new generation onto the grid in a way that's affordable

14:10 - for families and consumers, and be responsive to those families

14:14 - and their elected representatives

14:17 - as we confront rising energy demand.

14:20 - Is PJM capacity market, which we have entrusted with

14:23 - balancing energy supply and demanding maintaining

14:28 - the demand and maintaining resource adequacy, capable of bringing new

14:32 - energy resources under the grid at prices that are affordable to consumers.

14:36 - That is a foundational question that we must answer,

14:40 - and if it is not, then the question is what comes next?

14:45 - That's what we need to explore here today.

14:48 - Now hear me on this exploring what comes next for PJM

14:52 - and the 13 states that have come here today.

14:55 - Well, that doesn't mean going backwards

14:57 - to the same old approaches that we've relied on in the past.

15:01 - It means looking forward and really grappling with how we can work together

15:06 - to meet our region's energy needs, while keeping energy costs down.

15:11 - I challenge each of you who are here today for the hottest ticket in town,

15:16 - not to retreat to your separate corners and familiar arguments,

15:21 - but to approach today's conversations with the clarity that there are

15:24 - significant challenges to solve, and with the ambition to think big again,

15:30 - and to put all of the ideas on the table for meaningful discussion.

15:35 - It was here in Philadelphia that PJM was founded 98 years ago.

15:40 - This is where it all started,

15:42 - and this is where we can begin to write the next chapter together.

15:46 - I view this as a moment of real opportunity for PJM

15:50 - and its member states working together.

15:53 - I know we can reform this system to give states more, say,

15:57 - to generate more power, more quickly, and to hold down costs.

16:02 - Working together, I believe we can accomplish that.

16:05 - So I want to thank you for being here today.

16:07 - I want to thank you in advance for your constructive participation,

16:11 - and I hope you enjoy your time here in the city of Brotherly

16:14 - Love and Sisterly Affection.

16:15 - Thank you very, very much. Thank you.

16:20 - Thank

16:20 - you. And.