Eight state leaders sign joint letter calling on FERC to hold Regional Grid Operator PJM Accountable

WASHINGTON, D.C. – Today, eight state organizations all within PJM’s jurisdiction, wrote to the Federal Energy Regulatory Commission (FERC) advocating for governance and stakeholder reforms for the nation’s largest grid operator. These reforms would ensure PJM serves the public interest over private profits while delivering reliable, affordable electricity across their service territory. 

As ratepayers see massive rising energy bills, leaders in Illinois, Indiana, Maryland, New Jersey, North Carolina, Ohio, Pennsylvania, and Virginia have demanded reforms including expanded transparency and greater consumer input into operations. Advocates have called out PJM’s tendency to solely ask for input from big utilities, electricity generators, and transmission owners – which all have a direct financial stake in PJM’s decisions. This outdated model has resulted in prioritizing expensive, dirty fossil fuels while delaying affordable, clean energy projects, which stand to save ratepayers money on their monthly bills while helping address rising demand across PJM. 

Here is the full text of the groups’ letter to FERC where they jointly address specific questions asked by the agency as a part of the public comment period. 

“PJM has become an insulated echo-chamber for corporate interests that has cost ratepayers billions of dollars,” said Lashelle Johnson, Senior Director of State Climate and Equity Policy at the League of Conservation Voters. “The public has demanded common sense reforms that are standard practice for their counterparts, but PJM has spent decades listening to corporations instead of the 67 million people it serves. FERC needs to bring this hundred-year-old organization into the 21st century so we can continue building the clean, affordable future people deserve.”

“Rising costs in PJM territory in Illinois are already sobering, and the influx of data centers threatens to send energy prices skyrocketing even more. As Big Tech’s energy-hungry data centers sap up more and more power, we need solutions on every level to protect Illinois families from utility bill spikes and accelerate climate action,” saidJen Walling, Illinois Environmental Council Chief Executive Officer. “PJM has a significant role to play, and these reforms will ensure the grid operator is doing its part to more effectively manage the grid and thus more effectively deliver affordable clean energy.”

“A fundamental flaw in PJM’s governance structure is that it is not designed to prioritize ratepayer or affordability needs. We’re seeing mismanagement at PJM and the resulting electricity cost spikes in part because states and ratepayer advocates lack an adequate voice at the table,” said Rebecca Rehr, Director of Climate Policy and Justice, Maryland League of Conservation Voters earlier this summer at a joint press conference outside of FERC.

“Under PJM’s watch, working families in New Jersey have seen their energy bills skyrocket,” said Allison McLeod, Interim Executive Director, New Jersey League of Conservation Voters. “PJM’s grid mismanagement is reaching a breaking point and New Jerseyans are paying the price. For too many years, PJM’s opaque governance process has favored the profits of utilities and transmission owners over ratepayers, while preventing cheaper clean energy solutions from lowering costs. We are calling for urgently needed reforms to ensure the voices of average people in our state are at the table to push PJM to deliver the reliable, affordable energy our state needs.”

“Pennsylvania has been cleaning up after PJM time and time again while they continue to ignore the interests of the people footing the bill,” said Katie Blume, Political & Legislative Director at Conservation Voters of Pennsylvania. “Earlier this week, Governor Shapiro signed an executive order to protect families from the energy affordability crisis PJM continues to perpetuate. The public should not have to rely on executive action to have a voice at PJM. Billion dollar corporations do not deserve an exclusive stake in these decisions. FERC must remove the roadblocks to meaningful public engagement and rebalance the scales that have long favored a dirty, fossil-fueled status quo. Pennsylvanians cannot afford to wait.”

“Virginia’s the data center capital of the world, and our ratepayers are seeing bill increase after bill increase and dirtier air, all while PJM delays affordable, clean energy projects that can help lower costs for Virginians,” said Lee Francis, Chief Program and Communications Officer with the Virginia League of Conservation Voters. “We deserve a regional grid that puts Virginians first and that’s responsive to Virginia’s energy needs.” 

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