There is increasing criticism that PJM, the regional transmission organization, is too large and struggles to operate effectively due to varying state interests. A governance conference has been scheduled by FERC to assess PJM's ability to respond to needs quickly.
● State-level disagreements, particularly between energy-exporting states (like Pennsylvania) and energy-importing states (like Virginia and Maryland), complicate PJM's operations.
● Differences in energy capacity pricing and transmission costs arise from varied state policies on energy generation and emissions.
● PJM is evolving to meet market demands, successfully clearing 60% of its interconnection backlog and taking steps to integrate more renewable sources.
● Over 46,000 MW of approved projects are stalled, mainly due to state and local permitting issues, while some plants are being retired early due to regulatory pressure.
● PJM has maintained operational stability for over 30 years, generating significant savings for customers, but it cannot control state legislative and permitting processes.
PJM is not too big; rather, it is hindered by state policies that obstruct market benefits. States need to recognize their role in enabling energy infrastructure development. If PJM encounters failure, the states will bear responsibility for the consequences.
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