White House Warns PJM to Reform Grid Governance ‘Before It Is Too Late’
Amid mounting pressure over rising AI power demand, the White House warns PJM Interconnection to overhaul its industry-controlled board or face potential regulatory fallout.
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The White House has warned PJM Interconnection, the nation's largest grid operator, to reform its governance structure and stakeholder process or face potential regulatory consequences. The warning stems from PJM's failure to implement principles provided by the White House in January, despite support from all governors in its 13-state region. A key concern is that PJM's board is controlled by the companies that profit from the rules the board creates, making it an outlier among regional grids in the United States. The Federal Energy Regulatory Commission is scheduled to convene a technical conference to examine PJM's governance and whether its current processes allow it to respond quickly enough to reliability and market challenges amid rising electricity demand.
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