President Donald Trump’s administration and a bipartisan, mid-Atlantic group of governors teamed up on Jan. 16, calling for an emergency power auction and for the nation’s largest grid operator to lower its prices.
In the power auction, companies would bid on 15-year contracts for new electricity generation capacity, creating new power plants to meet energy demands driven by artificial intelligence (AI).
The officials are urging PJM Interconnection, which handles electricity for Washington and 13 East Coast and Midwest states, to reform its policies to ensure that American citizens aren’t burdened with rising costs from new power plants, especially with the increasing energy demand for data centers to power artificial intelligence technology.
The discussions on Jan. 16 focused on how to speed up the construction of more than $15 billion in new power generation.
Energy Secretary Chris Wright and Interior Secretary Doug Burgum were joined by Virginia Gov. Glenn Youngkin, a Republican; Ohio Gov. Mike DeWine, a Republican; Pennsylvania Gov. Josh Shapiro, a Democrat; and Maryland Gov. Wes Moore, a Democrat, in signing a “Statement of Principles” at the White House event.
The remaining governors from the rest of the PJM-serviced states have also signed onto the initiative.
PJM outlined in an emailed statement to The Epoch Times its board’s plan to integrate new data centers onto its grid while preserving its systems for the roughly 67 million people it serves.
The plan involves 12 proposals, which PJM said includes some to be filed directly with the Federal Energy Regulatory Commission and other changes the grid operator can make immediately.
Some of the PJM board’s proposals are “significant load forecasting improvements,” “immediate initiation of a backdrop generation procurement process to address short-term reliability needs,” an increased role for states, and a review of PJM markets.
“This is not a yes/no to data centers. This is ‘How can we do this while keeping the lights on and recognizing the impact on consumers at the same time?’” PJM CEO David Mills, who is also the chairman of the PJM board and interim president, said in the statement.
Trump declared a National Energy Emergency when he took office in 2025, warning of blackouts and soaring energy prices due to the prior administration’s clean energy push.
“I never want Americans to pay higher electricity bills because of data centers,” Trump said in a Truth Social post on Jan. 12.
“We are the ‘HOTTEST’ Country in the World, and Number One in AI. Data Centers are key to that boom, and keeping Americans FREE and SECURE, but the big Technology Companies who build them must ‘pay their own way.’”
Wright said that with the initiative on Jan. 16, the United States will be able to accelerate the construction of large, reliable power plants again.
Policies the group of lawmakers is urging PJM to adopt include requiring data centers to pay for the new power being constructed on its behalf and a two-year price-cap deal for future PJM power auctions.
The initiative will make sure new data centers for powering AI are funded by technology companies—not taxpayers—Burgum stated in the statement.
He said he negotiated a price cap following the lawsuit and made clear that his involvement in the event on Jan. 16 was contingent on extending it. In PJM’s statement on Jan. 16, the company said it will seek additional feedback from its stakeholders before deciding whether to extend its price floor or ceiling.
Shapiro said that if PJM implements the proposed policies, the extended price cap could save 67 million customers about $27 billion over the next two years.
“For two years, I’ve been sounding the alarm, explaining that without fundamental changes to PJM, Pennsylvanians were going to be paying more and more, and getting nothing in return,” Shapiro said in the statement. “I’m glad the White House is following Pennsylvania’s lead and adopting the solutions we’ve been pushing for.”
The Jan. 16 initiative comes as the PJM board considers revised rules for its 2028–2029 capacity auction, which will be held in June.
In the coming years, Trump’s energy agenda and the United States’ leadership in the AI race are dependent on the construction of new plants and reliable, around-the-clock power, which the new initiative will bring, the Energy Department stated.
