Wes Moore Leads Governors in Urging PJM Reforms Amid Rising Electricity Costs

Maryland Governor Wes Moore has joined a bipartisan coalition of state executives to call for fundamental changes in the governance of PJM Interconnection, the operator of Maryland's electrical grid. Amid concerns of rising utility prices and inefficiencies, Moore emphasizes the need for experienced leadership that can effectively address the challenges facing PJM and restore public confidence.

The coalition, comprising governors from states affected by PJM's operations, has addressed a letter to the grid operator urging the appointment of distinguished and capable board members. This letter follows the recent terminations of two longstanding board members and the announcement of PJM CEO Manu Asthana's forthcoming departure. The governors are advocating for a transparent nomination process that includes candidates proposed by the states, highlighting the direct impact PJM's decisions have on state residents and their daily lives.

Participation in the PJM Governors Group, which aims to have a greater influence over grid decisions, is seen as a crucial step by Moore. The group seeks to prioritize affordability, transparency, and long-term planning within PJM's decision-making framework. Moore stresses that effectively managing the energy grid is vital not only for business competitiveness but also for the financial well-being of Maryland families.

The letter reflects broader concerns over PJM's failure to connect new resources to the electrical grid efficiently and its shortcomings in long-term transmission planning, factors contributing to increased electricity costs and compromised grid stability. The governors assert that PJM must evolve and embrace reforms that incorporate state-level input and provide the necessary accountability to rebuild trust with the public. They advocate for PJM to become a partner rather than a barrier in achieving a clean, reliable, and affordable energy future.

PJM, which operates a significant portion of the nation's electric grid serving 67 million people across several states, has been under scrutiny due to increased capacity costs and subsequent electricity bill hikes. The governors believe that state representation on PJM's board is essential to address these issues effectively and ensure that ratepayer needs are prioritized in grid governance decisions.

Analysts predict that while leaving PJM may not be imminent for states like New Jersey and Maryland, the ongoing criticism reflects a political risk that state policymakers face amid rising power prices and ratepayer frustrations. Despite these challenges, stakeholders remain committed to working towards a solution that benefits all residents.

In his capacity as governor, Moore is dedicated to advancing a more collaborative approach between states in the PJM region to collectively tackle issues related to transmission, resource adequacy, and electricity market governance. The formation of an interstate governors group is part of these efforts to guide PJM in charting a productive path forward, ensuring reliable and affordable electricity for every resident.

As the PJM Governors Group prepares to meet with PJM leadership, Governor Moore and his coalition hope to influence the appointment process for board members and encourage meaningful governance reforms that will align with the interests and needs of the states within its footprint.