Pennsylvania Gov. Josh Shapiro said he worked with PJM to lower the capacity auction price cap – from over $500/MW-day to $325/MW-day.

Eastern grid operator PJM Interconnection LLC reached a preliminary agreement Tuesday with Pennsylvania Gov. Josh Shapiro to resolve a pending lawsuit to cap prices paid to electricity generators for future supply.

If approved, the agreement would settle a complaint by Pennsylvania Gov. Shapiro over the PJM Interconnection’s capacity auction price cap.

Pennsylvania Gov. Josh Shapiro on Tuesday announced he’s reached agreement with the regional grid operator PJM Interconnection that he said will blunt the expected sharp rise in the cost of electricity later this year.