Electric bills are rising in Pa. and N.J. Governors want the energy grid operator to help cut costs.

The governors of Pennsylvania and New Jersey are among the state leaders calling on the energy grid operator to help make bills more affordable for local consumers.

Pennsylvania Gov. Josh Shapiro and New Jersey Gov. Phil Murphy signed a letter to PJM Interconnection asking the Audubon-based operator to take steps “to prevent customers from paying billions more than is necessary.” Delaware Gov. John Carney, Maryland Gov. Wes Moore, and Illinois Gov. J.B. Pritzker also signed the letter, which was sent Friday and included a list of recommendations.

“As the demand for energy continues to increase, PJM must take comprehensive steps to address record-high electricity capacity prices and help more projects get connected to the power grid quickly in order to keep costs low for hardworking families,” Shapiro said in a statement Tuesday about the governors’ action.

PJM coordinates the movement of electricity, including through the competitive marketplace, to about 65 million people in 13 states and the District of Columbia. It sells wholesale electricity to utility companies, which then sell the electricity to consumers, and also predicts and secures the energy supply resources that will be needed to meet future demand through its capacity market.

Power grids across the country have become particularly strained by artificial intelligence data centers and clean-technology manufacturing, challenging operators to increase supply to meet demand without exacerbating climate change. As older generators are retired for environmental or financial reasons, the building of new, cleaner power sources has been slow.

“PJM has been warning for some time that policy pressure on generators to retire before their replacement is in place could result in a supply crunch,” PJM spokesperson Jeff Shields said in a statement. “Growing demand for electricity has made that happen even faster than we feared.”

In the governors’ letter, they took issue with what they called “serious flaws” in PJM’s capacity market that contributed to higher prices in its latest capacity auction in July.

“These record high prices are a serious concern,” the governors wrote. “The resulting $14.7 billion bill will be paid by our residents and our businesses and could deter future economic development.”

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For consumers, this comes as Peco has requested a rate hike that it estimated would increase monthly bills next year by more than $16 on average. In New Jersey, PSE&G recently upped its electric and gas distribution base rate for the first time in eight years, leading to a monthly bill increase of between $11 and $15, and Atlantic City Electric customers have bemoaned sky-high bills after a 20% overall bill increase in the past year.

“PJM must take action now to address record high prices,” Murphy said. “In New Jersey, we’re doing our part by bringing new resources to the market and making electricity more affordable for families and businesses as we look to a clean and resilient energy future. However, our grid operator must work in lockstep with the states and recognize that the market isn’t responding quickly enough due to current conditions of slow interconnection.”

Capacity is just one factor that impacts how much consumers pay for the electricity.

Earlier this month, before the governors’ letter was sent, PJM announced plans to delay its next auction, set for December, by six months in order to make changes to its capacity market.

“Our state leaders are critical voices,” Shields said, “and we appreciate their input as we work to balance the need for an investment signal for new generation with the need to keep prices affordable for consumers.”