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FERC will impose reforms if PJM fails to adopt changes by September, chairman warns
Utility Dive • • business
Key Points:
- FERC Chairman Laura Swett warned that PJM Interconnection must agree to governance and stakeholder reforms by the end of September, or FERC will impose changes due to a "grave legitimacy crisis" and lost confidence among market participants.
- PJM's current governance issues include a sector-weighted voting system that allows two sectors to block measures, ineffective stakeholder processes, and limited state involvement, prompting calls for increased board independence and formal state roles.
- States and utilities support reforms such as granting states filing rights at FERC, shifting to an advisory stakeholder model, and empowering PJM’s board to act more independently to better serve public interests.
- There is emerging consensus on key reforms, including expanding state influence and enhancing board independence, though some disagreements remain; FERC plans a dispute resolution forum in September to develop a reform package.
- Experts emphasize the need for PJM’s mission and operations to prioritize the public interest over member interests, suggesting that this focus is critical for meaningful governance improvements.
