HARRISBURG — Gov. Josh Shapiro on Tuesday said he reached an agreement in his complaint against the organization that manages the power grid in Pennsylvania and 12 other states, even as the state’s top utility regulator predicted “spikes” in the cost of electricity. The regulator, Public Utility Commission Chairman Stephen DeFrank, told senators at a legislative hearing that because of closing power plants and surging needs for electricity — driven in part by new data centers and creation of AI — a “regular supply-and-demand argument” on prices is emerging.

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About a month ago, Mr. Shapiro filed a federal complaint against PJM Interconnection, claiming its practices would cost consumers billions of dollars. In a news release issued Tuesday morning, Mr. Shapiro said his administration and PJM have “agreed to a path forward for the complaint.” A short time later, PJM responded to a request for comment with a notice it sent to stakeholders, also telling of agreeing on “a path forward for the complaint.”

The organization runs “capacity auctions” that are an integral part of the electricity-providing process in the 13-state region. Mr. Shapiro said he worked with PJM to get them to significantly lower the capacity auction price, thus “averting a runaway auction price that would have unnecessarily increased energy bills.”

“When PJM’s next auction was set to result in historic price hikes, I filed a lawsuit to stop this price hike on consumers and defend Pennsylvanians,” Mr. Shapiro said. “PJM did the right thing by listening to my concerns and coming to the table to find a path forward that will save Pennsylvanians billions of dollars on their electricity bills.”

In its notice to stakeholders, PJM said the two parties agree to a “cap” and a “floor” for prices in upcoming capacity auctions. PJM said it would make a filing on the arrangement with the Federal Energy Regulatory Commission, where Mr. Shapiro filed his complaint.