Governor JB Pritzker has joined a bipartisan coalition of governors from the PJM Interconnection region in urging the grid operator to implement stronger safeguards ensuring massive data centers cover the full costs they impose on the electricity system and do not drive up bills for working families.
In a joint letter sent on Tuesday, the governors called on PJM to require new data centers entering service after July 1, 2027, to directly pay backstop capacity costs, except in states with established rate structures for large loads. They also demanded robust consumer protections against stranded costs if data centers default, and measures to prevent inflated capacity market prices.
The coalition further recommended a “connect-and-manage” program that would subject non-compliant data centers to mandatory curtailment during system stress events.
The move builds on recent progress, including PJM’s extension of the capacity market price collar — a step that has already saved consumers approximately $18 billion, with another $27 billion in projected savings. Governor Pritzker stressed that as electricity demand and costs rise across Illinois and the region, the priority must remain protecting working families while ensuring reliable and affordable energy supply.
This latest action reflects Pritzker’s ongoing efforts to address energy affordability, including his proposal for a two-year pause on Illinois’ data center tax credit program and his leadership in pushing for governance reforms at PJM.
The governors also encouraged PJM to remain flexible by considering all new supply- and demand-side resources for the 2027/2028 delivery year to meet near-term reliability needs.
