Brownell Defends Competitive Power Markets, Citing Pennsylvania's 40% Electricity Surplus Over Virginia's Import Dependence
Updated
Updated · Utility Dive · May 11
Brownell Defends Competitive Power Markets, Citing Pennsylvania's 40% Electricity Surplus Over Virginia's Import Dependence
1 articles · Updated · Utility Dive · May 11
Nora Mead Brownell argued rising power bills should not trigger a retreat from competitive wholesale markets, saying the bigger problem is too little supply, not market design.
PJM's higher capacity prices reflect demand growth, generator retirements and clogged interconnection queues, she wrote, calling those prices signals for new investment rather than proof competition failed.
Pennsylvania generates about 40% more electricity than it consumes under a competitive framework, Brownell said, while vertically integrated Virginia has become the largest U.S. electricity importer as data-center demand outpaces new supply.
She urged policymakers to speed permitting and interconnection, tighten resource-adequacy rules, remove policy distortions and make large new loads bear appropriate costs instead of shifting risk back to ratepayers through re-regulation.
Why are electricity rates higher in competitive Pennsylvania than in data-center-heavy Virginia, challenging claims about market efficiency?
With data centers driving demand, who should pay for the massive grid upgrades needed to keep the lights on for everyone?
As both market models face rising costs and reliability risks, what innovative solutions can prevent a future of energy scarcity?
Pennsylvania and Virginia at a Crossroads: Data Center Growth, Market Reform, and the PJM Grid’s Reliability Challenge
Overview
As of May 2026, the PJM regional grid is under significant strain due to a surge in electricity demand, mainly driven by the rapid growth of data centers in Virginia. This explosive demand has caused commercial electricity sales in Virginia to soar and dramatically reshaped load profiles in PJM’s Dominion zone. As a result, reserve margins have tightened, and both summer and winter peak loads have reached record highs. These changes highlight the urgent need for new resources and policy reforms to maintain grid reliability and meet the evolving energy needs of the region.