NEW ANALYSIS: Households Will Pay Thousands More for Electricity Over the Next Decade without New Clean Power Sources in PJM

Jan 21 2026


  • Without new cleanenergydevelopment, ACP estimates that ratepayers across nine PJM states would pay anadditional$360 billionover the next ten years.
  • The average residential householdwould see$3,000 to $8,500inadditionalelectricity costs over the next decade.

WASHINGTON, D.C., January 21, 2026 Electricity demand across the PJM Interconnection region is growing at an unprecedented pace, driven by rapid expansion of data centers, advanced manufacturing, electrification, and broader economic growth. Anew analysisby the 鶹ҹ Association (ACP) finds that withouttimelydeployment ofsignificantnew clean energy resources, Mid-Atlantic and Midwest states face serious reliability risks and dramatically higher electricity costs over the next decade.

Thereisagrowing mismatch between demand growth and new conventional generationthatpresents an immediate challenge to grid reliability and affordability across the PJM region.The cost impacts aresubstantial. Without new clean energy development, ACP estimates that ratepayers across nine PJM states would pay anadditional$360 billionover the next ten years, driven primarily by higher wholesale electricity prices. The average residential household would see$3,000 to $8,500inadditionalelectricity costs over thenextdecade.

The issue of energy affordabilityin the Mid-Atlantichas now movedsquarelyinto the political spotlight.Just last week,both theandbipartisan group of state governorscalled onPJMtotake steps to address thisissue.

“To keep the lights on and power economic growth, PJM needs resources that can be built quickly, operate reliably, and protect customersfromsurpriseson their electric bills,” saidJohn Hensley, Senior Vice President of Markets and Policy Analysis at ACP. “Our analysis shows that clean energy sources and storage are uniquely positioned to meet near-term demand growth while lowering costs and strengthening reliability for consumers.”

To evaluate system-wide impacts, ACP modeled PJM under two scenarios: abasecase, where all generation resources are available, and anonewcleanpowercase, where nonewwind, solar, or storage projects are added beyond those already under construction or required by law. The results show stark differences.

In the“no new cleanpower case,”PJM becomes increasingly reliant on aging, higher-cost fossil fuel generation and imported electricity. Net power imports risenearly 300%by 2035, increasing exposure to fuel price volatility andoperatinghours with extremely high electricity prices. The analysis also finds elevated reliability risks during peak demand periods, when the system is most vulnerable.

Clean energy resources—including windandsolar—can be deployed more quickly andoperateat lower long-term cost.On average, new electricity loads can be constructedwithin one to two years, while new natural gas power plants typicallyrequirefive to seven years topermitand build—and are currently constrained by limited turbine supply.Clean energyresources canhelp meet rising demand, support resource adequacy, and stabilize wholesale electricity prices during a critical period of load growth.

“These findings make clear that delaying clean energy deployment comes at a steep cost,” Hensley added. “Timely investment in wind, solar, and energy storage is essential to maintaining reliability, reducing dependence on imports, and protecting families and businesses from sharply higher electricity bills as demand continues to grow.”