PJM Interconnection LLC provides power to 67 million residents across a region stretching from Virginia to Illinois. It runs the biggest power grid in the country, serving 13 states. But lately, it has been struggling to do its main job: making sure there is enough electricity to go around.
The clearest sign of trouble came from its most recent auction. When an auction fails, it means the grid may not have enough supply to meet demand when people need it most.
On top of that, new power plants take forever to connect to PJM's system. For years, customers, utilities, and businesses across the 13 states that depend on PJM's network have voiced grievances, accusing the organization of being excessively sluggish in connecting new generation plants. The White House has grown frustrated with the slow pace of change, according to anonymous officials.
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The timing matters. Electricity demand is climbing, mostly because of new data centers. Trump has condemned attempts to obstruct new data center projects, arguing they are essential for America to prevail in the AI competition with China. However, he also wants to reduce household energy bills before the November midterm elections, which are likely to be determined by economic issues.
Increasing power costs have turned into a strong political flashpoint. Governor Josh Shapiro of Pennsylvania stated that his state would exit PJM's markets if required changes are not implemented. American Electric Power Co., which ranks among America's biggest utility companies, has similarly warned it may withdraw from PJM.
Federal Energy Regulatory Commission Chairman Laura Swett set the tone back in May when she said PJM may have grown "too big to function." That phrase is hanging over this week's meeting. Anonymous senior White House aides stated that every possibility must be considered, including dissolving PJM, allowing state exits, or reorganizing the grid's governance and management. According to these officials, PJM's executives have forgotten that their core mission is to provide dependable and cost-effective power.
Representatives from the US Energy Department, President Trump's National Energy Dominance Council, Pennsylvania, Indiana, Google (Alphabet Inc.), power generator Constellation Energy Corp., and utility firm Vistra Corp. will attend the meeting.
In January, Trump along with a bipartisan coalition of state governors suggested that PJM run a special auction where technology firms could finance new generation by competing for 15-year capacity agreements. The administration had hoped the auction would take place before October, but PJM has yet to submit the required documents to FERC, increasing tensions. PJM representative Daniel Lockwood stated that the submission will be made shortly. "The organization is still on track to execute in the previously announced timeframe recommended by the White House," he said in an email.
According to advance filings, participants from AEP and Pennsylvania will stress on Thursday that PJM board members should live permanently within the grid's footprint. This statement seems to indirectly fault certain directors who fail to meet that residency requirement. CEO David Mills, a former board chair, maintains homes in Pennsylvania and Washington state.
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