Federal regulators call for governance reforms at PJM as data center demand, rising costs, and reliability concerns place pressure on regional electric grid.
Federal regulators are pressing PJM Interconnection to overhaul its governance and decision-making process as rapid data center growth, limited new generation, and rising capacity prices strain the regional power market. Proposed reforms include strengthening the independence of PJM’s board, reducing the ability of industry sectors to block action, and replacing the current stakeholder voting structure with a more advisory process that allows the board to make timely decisions.
States may also receive a larger formal role in PJM, including greater access to the board and the ability to submit proposals directly to federal regulators. FERC plans to facilitate negotiations through September 2026 and has warned that it will impose reforms if stakeholders cannot reach an agreement, reflecting growing concern that PJM’s current structure is not responding effectively to reliability, affordability, and public-interest challenges.
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