Governors of the states covered by the biggest U.S. grid operator, PJM Interconnection, will discuss a greater role for the states in the decision-making at the company amid soaring consumer electricity bills, a source with knowledge of the plans told Reuters on Monday.
PJM Interconnection, the operator of the largest U.S. electric grid covering 13 mid-Atlantic and Midwest states, is governed by a board of managers. Power plant operators and owners of transmission lines have voting power.
The states now want a greater role in the governance of the grid operator, similar to those of the New England and Midwest grids, according to Reuters’ source.
PJM coordinates the movement of electricity through all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of Columbia.
The governors are expected to launch a so-called “PJM Governors’ Collaborative” at a summit in Philadelphia, Pennsylvania.
“Among the first ideas the PJM Governors’ Collaborative will discuss at the summit will be historic reforms to PJM governance to give the states a larger role in decision-making moving forward,” the source told Reuters.
The governors are concerned that without more influence over the decision-making process consumers will continue to be burdened by the recent spikes in electricity prices in many areas where demand has surged due to AI data centers.
PJM’s area of operations hosts the biggest data centers and demand is set to continue rising with the advance of generative AI technologies.
Pennsylvania Governor Josh Shapiro?has recently agreed with PJM to significantly lower the capacity auction price cap, to avoid price hikes on consumers across all 13 states PJM serves, including Pennsylvania.
Governor Shapiro has repeatedly pressed for long-term solutions at PJM that address increasing costs, including capacity market reforms to more accurately reflect real world conditions.
A greater role for the states in the PJM decision-making could help the governors advance their efforts to protect consumers from spiking energy bills.
By Tsvetana Paraskova for Oilprice.com
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