Grid operator PJM Interconnection must move faster to address reliability challenges posed by unprecedented demand or risk losing credibility as the largest US power market, Federal Energy Regulatory Commission (FERC) chair Laura Swett said.
"We still expect PJM to run markets that are fair and efficient for everyone, to plan transmission across diverse jurisdictions, and to maintain reliability through extreme weather, shifting fuel mixes, and rapid technological change," said Swett at the grid operator's annual meeting Tuesday. "If this can't be landed given PJM's huge and diverse footprint, perhaps it simply has grown too big to function."
PJM, which serves 67mn people across 13 states and the District of Columbia, is under pressure to speed up its decision making process and grid development as surging data center demand raises prices for consumers and strains its ability to deliver reliable power. The grid operator has warned that its rules were built for steady, predictable growth and so fail to deliver new supply quickly. Its recent capacity auctions, which secure back up generation reserves to meet peak demand, have produced record prices and fallen short of reliability targets.
PJM is considering ways to redesign its market, recently outlining three potential paths for stakeholders without endorsing a specific solution.
FERC noted the grid's process may be hindering reform.
"The current stakeholder process is slow where it must be fast, opaque where it must be transparent, and vulnerable to vetoes and agenda control exactly when the region needs immediate action," Swett said. "The stakes for reliability, affordability, and public confidence are too high to tolerate a system that stalls when the hard decisions arrive. Simply put, the status quo is unacceptable and has been for some time."
FERC will convene a technical conference on 23 July to examine "flaws and solutions related to PJM's stakeholder process and governance".
