US Power Grid Operator PJM Is Considering Market Overhaul
PJM outlined three reform paths to curb volatility as its board warned that unsustainable stress could undermine reliability and deter new investment.
- PJM Interconnection issued a report Wednesday proposing market reforms to address grid strain from rising data center demand. The grid operator serves 67 million people across 13 states.
- Growing electricity demand from data centers and retirement of older power plants have tightened supply. Construction timelines for new generation have more than doubled, creating investment barriers.
- Three proposed frameworks include prioritizing long-term contracts to shield consumers from volatility, differentiating reliability standards across customer classes, or emphasizing energy markets with reduced backstops. Each path involves trade-offs affecting stakeholders uniquely.
- PJM President and CEO David Mills stated, "Wholesale electricity markets are extraordinary institutions," emphasizing that credibility is essential for stability. He invited utilities, investors, and consumers to join reform discussions.
- Jon Gordon of Advanced Energy United called the report self-reflective, while Pennsylvania Governor Josh Shapiro continues pushing for consumer protections after suing the grid operator last year over record auction prices.
24 Articles
24 Articles
Citing 'unsustainable stress' from price volatility, grid operator PJM lays out reform options
PJM Interconnection has called on power plants, investors, utilities and consumers to consider reforms to ensure the region’s wholesale electricity market can supply enough power as it faces unprecedented demand from data centers.
Ohio Capital Journal
Citing ‘unsustainable stress’ from price volatility, grid operator PJM lays out reform options
Constellation Energy's Eddystone Generating Station in Delaware County is one of two fossil fuel fired power plants ordered by U.S. Energy Secretary Chris Wright to remain ready to produce electricity beyond their retirement dates. (Photo by Peter Hall/Capital-Star)The nation’s largest electricity grid operator has called on power plant operators, investors, utilities and consumers to consider reforms to ensure the region’s wholesale electricity…
Omaha World-Herald
Power grid operator PJM mulls market overhaul
NEW YORK — PJM Interconnection, the largest U.S. power grid operator, said Wednesday it is considering market changes that could reshape how electricity is bought and sold across its system, which faces the risk of shortages from data centers outstripping…
PJM floats options for capacity market overhaul
“The current situation is not tenable,” PJM President and CEO David Mills said. “The region has years, not decades, to make these choices deliberately.” The grid operator lays out three options, including shifting to an energy market model, in a white paper.
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