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The PJM Interconnection has until the end of September to agree to governance and stakeholder reforms or the Federal Energy Regulatory Commission will impose them, the agency’s chairman, Laura Swett, said Thursday.
“PJM is facing a grave legitimacy crisis,” Swett said at a technical conference FERC held on the grid operator’s governance issues. “Some transmission owners are openly discussing leaving the RTO altogether. Put plainly, market participants have lost confidence in PJM's decision-making abilities.”
With PJM failing to attract significant new generation in its last two capacity auctions, the grid operator is ready for major changes in the way it operates, according to its new President and CEO David Mills, who officially took over the role in May after several months as interim leader.
“We are fully committed to rise to the challenge,” including capacity market reform, Mills said.
