Laura Swett calls for PJM Interconnection governance reforms to address a "grave legitimacy crisis" and restore market confidence.
Laura Swett, chairman of the Federal Energy Regulatory Commission, stated that the PJM Interconnection is facing a "grave legitimacy crisis" as market participants lose confidence in the grid operator's decision-making abilities. The administration announced that PJM has until the end of September to agree to governance and stakeholder reforms, or FERC will impose them. The nation's largest regional power grid operator has struggled to balance supply and demand, particularly as data center growth outpaced power supplies, leading to significant price spikes for consumers. Current governance gives heavy voting power to companies with financial stakes, which critics argue can overlook the needs of the 67 million ratepayers. Proposed reforms include moving to an advisory stakeholder process, increasing board independence, and granting states more formal influence and "filing rights." While PJM officials noted that states originally chose not to be members to avoid conflicting roles, the complexity of modern energy politics has made state participation more essential for reliable and affordable power.