PA Environment Digest Blog: Shapiro Administration: PJM Regional Electric Grid Operator Passed Over Qualified Candidates Suggested By A Bipartisan Coalition Of Governors To Fill Vacant Board Seats

On September 25, the PJM Interconnection announced it had filled two vacant positions on its Board of Managers to serve three-year terms on the Board. PJM added a third new member to the Board in May. Read more here.

In July, Gov. Shapiro joined a bipartisan group of eight other governors representing a majority of the electric customers in the PJM service footprint in saying they should have a role in filling the two PJM board vacancies. Read more here.

The Governors said-- “[We] believe these two Board seats must remain dedicated to candidates who are proposed by the states collectively and then vetted by the Nominating Committee, rather than leaving important decisions regarding every member of the Board to closed-door deliberations.

“At a time when PJM faces difficult decisions that could substantially raise consumer bills, we strongly believe ongoing Board-level representation of these perspectives is essential to preserving PJM’s legitimacy.” Read more here.

In response to Thursday's announcement by PJM, Governor Shapiro's Press Secretary Rosie Lapowsky said, "We are frustrated that the Nominating Committee chose to pass over the qualified candidates put forth by a bipartisan coalition of governors.

"PJM’s new board members need to show their commitment to improving affordability, reliability, and PJM’s governance so we can best serve the entire region, together – and we are ready to work with PJM in good faith to strengthen the grid for Pennsylvania."

Monday PJM Changes Summit

The PJM action to fill the seats also came after a Summit was held on Monday, September 22 in Philadelphia with representatives of the 13 PJM states and other stakeholders to focus attention on the need for changes in the way PJM manages the regional electric grid. Read more here.

Gov. Josh Shapiro opened a Summit on PJM by saying-- "It's not working anymore."

“PJM has been too slow to let new generation through its queue to join the grid at a time when demand for energy is going up,” said Gov. Shapiro. “PJM has a D-minus rating for the speed of its interconnection queue. Those delays threaten the very energy projects PJM says we need.

“This slow, reactive approach is no longer working for our states and the communities we serve.

“And it’s all happening at a time when the Trump Administration is cutting funding for new energy projects that are almost complete, at a time when we need more generation.

“The result has been dramatically increased prices in PJM’s capacity auctions,” said the Governor.”

“Yet despite these significant challenges, there is no forum for elected officials to have a say in PJM’s decisions.

“In other parts of the country, states have far more representation in the governance of their shared grid.

“For the largest grid in the nation to have the fewest avenues for customers and their elected representatives to be heard is unacceptable.

“Our states and our citizens deserve better, especially from an institution that was founded right here in Philadelphia, the birthplace of American democracy.”

In January, Gov. Shapiro also threatened to pull Pennsylvania out of PJM over the grid operator’s failure to protect state consumers against soaring power prices. Read more here.

He said at the time-- “A failure to hear the voices of Pennsylvania consumers speaking against this market failure will cause me to question whether Pennsylvania should remain within a construct that inflicts such unjust outcomes on our customers.”

PJM Summit Reaction

In reaction to the Summit, PJM President and CEO Manu Asthana was quoted by Utility Dive as saying the rush to point fingers over high prices and reliability issues is not helpful.

Asthana said states need to work on issues under their control, such as infrastructure siting and permitting reform, that can affect resource adequacy.

“We can do whatever we want in the [wholesale power] markets, but if our [power] plants run into a hostile siting and permitting regime, they will not get built,” Asthana said. Read more here.

Asthana plans to step down as PJM’s CEO at the end of this year.

NewsClips This Week- PJM:

-- Gov. Shapiro: PJM Electric Grid Operator Is 'Not Working Anymore,' 'I Won't Stand For A Status Quo That Perpetuates Slowdowns And Rising Costs’ [PaEN]

-- Shapiro Administration: PJM Regional Electric Grid Operator Passed Over Qualified Candidates Suggested By A Bipartisan Coalition Of Governors To Fill Vacant Board Seats [PaEN]

-- Utility Dive: PJM Grid Operator Says States Must Address Electricity Generation Deficit Issues; Siting, Permit Reform Needed To Overcome ‘Hostile’ Opposition

-- Post-Gazette: Gov. Shapiro Pummels PJM Regional Grid Operator In Call For Reforms

-- WHYY - Sophia Schmidt: Pennsylvania Leaving PJM Regional Electricity Grid Is Still On The Table, Shapiro Says

-- Bloomberg: Pennsylvania Threatens To Go ‘Own Way’ If PJM Regional Electric Grid Operator Won’t Change

-- Inside Climate News: PA Governor Threatens To Pull Largest Power Producer Out Of PJM Regional Power Grid Citing Need For ‘Significant Reform’

-- The Center Square: Shapiro: States In PJM Need More Power In PJM Regional Grid Management

-- PA Capital-Star: PA Gov. Shapiro Said Electric Grid Operator PJM Needs Reform To Put Consumers First

-- Republican Sen. Yaw Issues Statement On Shapiro’s Changing PJM Summit [Yaw Has A Strong Record Of Holding Hearings On This Issue]

-- Republican Sen. Martin Calls For Accountability From Gov. Shapiro On Energy Policy [Criticizes Shapiro For RGGI Program That Never Went Into Effect]

Resource Links - A.I. Data Centers:

-- Gov. Shapiro: PJM Electric Grid Operator Is 'Not Working Anymore,' 'I Won't Stand For A Status Quo That Perpetuates Slowdowns And Rising Costs’ [PaEN]

-- Shapiro Administration: PJM Regional Electric Grid Operator Passed Over Qualified Candidates Suggested By A Bipartisan Coalition Of Governors To Fill Vacant Board Seats [PaEN]

-- In Case You Missed It: A.I./Data Center Articles & NewClips From Last Week - September 29 [PaEN]

-- Team PA Releases PA Energy, Data Center, A.I. RoadMap, Includes ‘Aggressively Streamlining Permitting,' Establishing Regional Permitting Commissions [PaEN]

-- NRDC: Another Proposed PJM Plan To Deal With Massive A.I. Data Center Electricity Demands Fails To Protect Consumers, Will Increase Electricity Bills Up To $100 Billion From 2028 To 2032 [PaEN]

-- Inside Climate News: Shale Gas Was Supposed To Lower PA Electric Bills, Instead They’re Higher Than Ever And About To Get Worse [Due To LNG Gas Exports, A.I. Data Center Demand]

-- WESA - Rachel McDevitt: PJM Grid Operator Eyes Reliability Amid A.I. Data Center Boom, But Advocates Say Cost Concerns Remain

-- PUC Chairman: Model Tariff For Connecting A.I. Data Centers To Local Electric Grid To Be Published For Comment By End Of September [PaEN]

-- Guest Essay: Rewriting The Energy Story — Together - By Stephen M. DeFrank, Chairman, Pennsylvania Public Utility Commission [PaEN]

-- Gov. Shapiro Provides Update On The Fight To Lower Energy Prices, Calls On General Assembly To Move His Commonsense Lightning Energy Plan [PaEN]

-- Gov. Shapiro: FERC Approves Settlement With PJM To Prevent Unnecessary Prices Hikes, Save Consumers Over $21 Billion On Electric Bills [PaEN]