Trump, Governors Press PJM for Emergency Power Auction as Data‑Center‑Driven Electricity Prices Rise
The Trump White House, joined by a bipartisan group of PJM‑state governors and the National Energy Dominance Council, has urged PJM to run an emergency auction for 15‑year contracts in which tech companies would finance more than $15 billion of new, round‑the‑clock generation—largely natural‑gas plants—to meet rising electricity demand from data centers and ease price spikes concentrated in the Mid‑Atlantic. Supporters say the plan could reduce blackout risks, PJM’s board has vowed immediate steps and will separately assess integration of large loads, while critics contend the proposal skips fixes to the interconnection backlog and leans on fossil fuels instead of wind, solar and batteries.
📌 Key Facts
- The White House’s National Energy Dominance Council and a bipartisan group of governors unveiled a plan urging PJM to hold an emergency auction for 15‑year contracts in which tech companies would finance new generation capacity—targeting round‑the‑clock natural gas plants—and agreed on more than $15 billion in new generation projects in the PJM footprint.
- White House spokeswoman Taylor Rogers described the effort as an "unprecedented bipartisan effort" to fix what the administration called "energy subtraction policies" that forced plant shutdowns, saying the plan would help prevent price spikes and reduce blackout risks.
- All governors from PJM states signed a "statement of principles" calling on tech companies to pay for new power plants; Maryland Gov. Wes Moore and Pennsylvania Gov. Josh Shapiro warned the current market "blocks new supply" and credited the White House for following Pennsylvania’s lead.
- PJM was not invited to the White House–governors event; its Board of Managers said it will separately decide how to integrate data centers and large loads and has publicly committed to an "immediate initiation" to secure more power and a "backstop generation procurement process" for short‑term reliability.
- The Edison Electric Institute (representing investor‑owned utilities) is supporting the governors’ and administration’s push and says it wants to work with FERC and state commissions on a solution.
- Energy and clean‑tech groups pushed back: Advanced Energy United said the proposal does not fix PJM’s long‑jammed interconnection queue or other market and planning flaws, and former DOE loan chief Jigar Shah urged shifting from a fossil‑centric approach toward wind, solar and batteries.
- Electricity prices are rising—especially in Mid‑Atlantic states where many data centers are concentrated—and national residential prices rose during the prior administration (EIA data cited a 4.7% real increase during Biden’s term, 25.8% nominal), while recent increases have continued under the current administration and are driven by multiple factors including early AI power demand (contradicting a simple "over 30%" claim).
📊 Relevant Data
Hispanic households experience the highest combined energy burdens among racial/ethnic groups, spending on average 7.9% of their income on home energy and auto fuel costs, which is 42% above the national median.
Low-Income Households Spend Nearly 20% of Income on Energy and Auto Fuel Costs — ACEEE
Black and Latino households pay 13–18% more on average for energy per square foot of housing compared to White households.
Black and Indigenous populations are more than twice as likely as other groups to experience energy insecurity.
Energy Insecurity in the United States — Columbia University Center on Global Energy Policy
Black workers hold only 4.7% of software engineering jobs and 9% of all STEM jobs, despite comprising nearly 13% of the U.S. population.
Joint Center for Political and Economic Studies AI RFI 2025 — National Institute of Standards and Technology
Hispanic workers hold about 9% of AI technical occupations, compared to more than 18% of U.S. jobs overall.
Tech's diversity crisis is baking bias into AI systems — Context by Thomson Reuters Foundation
📰 Source Timeline (4)
Follow how coverage of this story developed over time
- Using Trump administration EIA data, Axios reports that national residential electricity prices rose 4.7% after inflation during Biden’s term, or 25.8% in nominal terms, versus Trump’s claim of "over 30%."
- The article highlights that price spikes are particularly acute in Mid‑Atlantic states where many data centers are concentrated, adding geographic detail to the earlier policy story.
- It notes that electricity prices continue to rise under Trump, including in Washington, D.C., underscoring that recent increases are not unique to the Biden years and are driven by multiple factors, including early AI power demand.
- CBS specifies that all governors from PJM states signed on to the 'statement of principles' that calls on tech companies to pay for new power plants, adding bipartisan breadth to the earlier framing.
- The article names the National Energy Dominance Council as the federal body that reached agreement with states on more than $15 billion in new generation projects in the PJM footprint.
- PJM’s Board of Managers publicly commits to an 'immediate initiation' to secure more power and a 'backstop generation procurement process' for short‑term reliability, signaling early movement in response to political pressure.
- Maryland Gov. Wes Moore and Pennsylvania Gov. Josh Shapiro are quoted emphasizing that the current market 'blocks new supply' and touting the White House for 'following Pennsylvania’s lead,' giving more color to gubernatorial positioning and 2028 ambitions.
- Confirms the White House 'energy dominance' council and a bipartisan group of governors have formally unveiled a plan urging PJM to hold an emergency auction in which tech companies would bid on 15‑year contracts to finance new generation capacity, particularly round‑the‑clock natural gas plants.
- Quotes White House spokeswoman Taylor Rogers saying the administration is leading an 'unprecedented bipartisan effort' to fix 'energy subtraction policies' that forced shutdowns of needed PJM plants and claiming the plan would prevent price increases and reduce blackout risks.
- Includes pushback from Advanced Energy United, which argues the proposal does nothing to fix PJM’s long‑jammed interconnection queue and other market and planning flaws, and cites former DOE loan chief Jigar Shah urging a shift away from a fossil‑centric approach in favor of wind, solar and batteries.
- Notes PJM wasn’t invited to the White House–governors event and says its board will separately issue a decision on integrating data centers and large loads, then assess how that aligns with the White House directive.
- Reports that the Edison Electric Institute, representing investor‑owned utilities, is backing the governors’ and administration’s push and wants to work with FERC and state commissions on a solution.