TEA has long said that government incentives to prop up renewable energy, as we continue to cancel investments into affordable and reliable energy sources like American natural gas, would eventually cost American families and businesses dearly. Well, in one region, it appears that day has come.

PJM Interconnection, a regional transmission organization that coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia, recently announced a shocking price increase of more than 800% coming for its customers in 2025-26. Spiking energy prices and declining generation from sources like natural gas have led to a significant supply and demand imbalance for PJM’s Interconnection’s area. This sharp increase can be attributed to the retirement of coal-fired power plants that are not being replaced with reliable natural gas power plants but with solar projects instead.

Renewable energy sources like solar and wind only generate electricity when the sun is shining or the wind is blowing. Unlike natural gas power plants, which can operate continuously, renewable energy can’t guarantee a steady and dependable supply of electricity, posing significant challenges for maintaining an affordable and reliable power grid. The government’s favoritism towards renewables has discouraged investment in the traditional power sources we need to maintain an affordable, reliable and clean electrical grid.

PJM’s astronomical price hike should be a wake-up call. The current trend of subsidizing and incentivizing renewable energy while choking out our traditional power sources like natural gas is unsustainable. American families and businesses need leaders that will prioritize long-term energy stability over short-term political gains. For more information about how natural gas is the affordable, reliable and clean energy source that can keep America plugged in, check out TEA’s Energy Security ARC.