Gov. Josh Shapiro: PJM model of raising prices to spur growth is 'completely broken'
Summary
- Governor Shapiro argues the PJM grid operator's model of raising prices to incentivize power generation is "completely broken" and has failed to add capacity (citing a D-minus grade).
- A coalition of 13 Governors and the White House is pressuring PJM to extend price caps for another two years to protect consumers (65 million Americans).
- Shapiro proposes a bifurcated market where residential rates are capped, while "Hyperscalers" and "Data Centers" participate in a secondary auction to pay for their specific incremental energy needs.
Trade Ideas
Shapiro outlines a principle where "If you're a big hyperscaler... you've got to be able to bring and pay for your own energy" via a "secondary auction." This shifts the cost burden of new generation explicitly onto Data Centers rather than spreading it across all ratepayers. While it ensures they get power (positive for growth), it likely increases their specific operating costs (negative for margins) compared to a subsidized model. Watch for the implementation of "secondary auctions" which could formalize higher energy costs for tech giants. If the secondary market fails to develop, data centers may face power shortages in the PJM region.
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This CNBC video, published February 12, 2026, features Josh Shapiro discussing EQIX, SKYY. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Josh Shapiro · Tickers: EQIX, SKYY