Pennsylvania Gov. Josh Shapiro said he worked with PJM to lower the capacity auction price cap – from over $500/MW-day to $325/MW-day.

Eastern grid operator PJM Interconnection LLC reached a preliminary agreement Tuesday with Pennsylvania Gov. Josh Shapiro to resolve a pending lawsuit to cap prices paid to electricity generators for future supply.

Governor Josh Shapiro has reached an agreement with PJM Interconnection after filing a lawsuit over its capacity auction design that could have imposed new price increases. Both parties resolved that lawsuit to reduce their price cap for the next two years.

Pennsylvania Gov. Josh Shapiro on Tuesday announced he's reached agreement with the regional grid operator PJM Interconnection that he said will blunt the expected sharp rise in the cost of electricity later this year.

The organization that oversees the region’s electrical grid has agreed to a new cap on certain power price hikes, following a threat from Pennsylvania Gov. Josh Shapiro to consider pulling out of the system.