The Federal Energy Regulatory Commission is warning PJM Interconnection that it must reach agreement on governance and stakeholder reforms by the end of September. If the regional grid operator does not act by then, FERC plans to step in and impose changes itself, according to the chairman, Laura Swett.
The debate centers on how PJM is governed and how decisions are shaped. Based on the discussion described so far, there is broad backing for measures that would make the organization’s board more independent from stakeholder pressures. One idea under consideration is shifting stakeholder input into a more clearly advisory role rather than allowing it to drive outcomes as directly.
Another major issue is the role of states. Participants appear to support giving states a stronger voice in PJM’s structure, reflecting the growing impact of state energy policies on wholesale markets and grid planning. Some also want PJM’s mission to more explicitly include the public interest, which could reshape how the operator balances market design, reliability and policy concerns.
The warning from FERC raises the pressure on PJM to produce a reform package within weeks. With federal regulators signaling they are prepared to act if the grid operator does not, the September deadline has become a key moment for how PJM’s board, stakeholders and state interests will be represented going forward.
