The politics of making electricity cheaper, from PJM reform to VPPs

Electricity affordability has become the defining energy issue of 2026. As policymakers scramble for solutions, two very different playbooks are taking shape.

On one side, a blunt-force federal approach led by the Trump Administration that treats affordability like an emergency. Keep coal plants open. Force markets to change. Make large power users pay directly for new power plants through market interventions.

On the other, a quieter, asset-light strategy is emerging at the state level. In places like Illinois, Virginia, and New Jersey, governors and legislatures are increasingly looking to virtual power plants to meet growing peaks and avoid overbuilding the grid.

This week on Open Circuit, we break down these two paths. What actually lowers costs, and on what timelines?

We start with the federal push to reshape PJM capacity markets and make big energy users pay for new supply. How would that actually work? Is it real market reform, or political signaling?

Then we turn to the state level, where VPPs and distributed resources are increasingly central to affordability plans. We compare how Illinois, Virginia, and New Jersey are approaching the problem.

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