In 2025, two major achievements stood out: Kendrick Lamar’s impressive wins at the Grammys, including Song of the Year, and Pennsylvania Gov. Josh Shapiro’s groundbreaking initiatives following a significant PJM capacity auction. The auction saw prices soar to $269.92 per megawatt-day, a stark increase from $28.92 per megawatt-day, leading to higher costs for consumers. Gov. Shapiro’s efforts involved negotiating price caps and other agreements to mitigate the impacts on residents.
This situation opens up a broader conversation about the idea of “energy dominance” in the U.S. The question isn’t merely whether PJM is functioning effectively; it’s about the meaning of energy dominance itself. It encompasses the need for continued infrastructure development that provides safe, reliable, and cleaner energy to all customers, while also ensuring stable rates.
There is a notable increase in electricity demand, which is crucial not only for the energy sector but for the overall economy. This growth is essential for maintaining a competitive edge in technology and the global market, including the race in artificial intelligence.
However, meeting this demand effectively is vital for maintaining fair pricing and preventing a divide between those who can afford energy and those who cannot. Energy providers and market regulators are trying to balance growth and economic development within their areas. The solution does not lie in co-location or a purely competitive market model, especially given the current challenges seen in Pennsylvania.
The energy transition we are experiencing relies on several fundamental aspects, including technological innovation and low gas prices. It’s essential to recognize the importance of integrated resource planning, which can face challenges from direct access and co-location strategies. These approaches often neglect retail customers, from everyday consumers to small businesses.
Bringing large energy loads to fruition can be beneficial. These customers can support infrastructure investments that ultimately stabilize energy costs for everyone. The aim is for any energy policies to benefit both significant and small customers. Direct access or co-location may inadvertently disadvantage smaller retail users.
Integrated resource planning holds the potential to address these needs effectively by managing new loads with a comprehensive system approach. This process needs adaptation, including quicker and more flexible regulatory responses. Large load customers require timely actions that do not linger in lengthy regulatory procedures. Embracing new contracts and risk-sharing will allow these loads to integrate into the energy system more smoothly.
The focus must remain on spreading the benefits of economic development and load growth across all customers. An integrated planning approach can help prevent scenarios like the conflict faced by Gov. Shapiro and PJM, while also ensuring that a divide between rate classes does not develop.
To achieve genuine energy dominance, it is essential to capture load growth and distribute its advantages widely. As discussions around co-location, direct access, and market restructuring move forward, small customers must not be overlooked.
If these goals are met, the U.S. can emerge as a leader in energy, much like Kendrick Lamar’s triumph symbolizes in the music arena.