PJM cannot build power plants itself or simply order them up. Some regulated states in the PJM region require their utilities to submit plans that establish a certain level of generation capacity in state; other deregulated states rely heavily on the PJM capacity market to incentivize investment in new generation. Adding supply will require all states to encourage the addition of new generation while removing obstacles to those resources getting built.

PJM has been clear that federal and state leaders need to expedite the construction of high-voltage transmission lines to move power where it’s needed. PJM has approved over $5.9 billion in recent transmission upgrades to support this. States also must reform local permitting processes so that approved projects don’t languish in legal battles.

PJM’s recent capacity auctions have cleared at higher prices, sending a direct financial signal to developers that more supply is needed immediately. This price signal is the most effective tool to incentivize the construction of new power generation.

But the pace of electricity growth is outstripping the market’s ability to attract new generation. PJM, in collaboration with its members and stakeholders, including the White House Council of Energy Dominance and the governors of the 13 states served by PJM, have committed to running an additional “backstop” procurement in 2026 to obtain new supply to fill the current gap.