PJM CEO Asthana Calls for State Action on Infrastructure to Address Power Supply Challenges

What's Happening?

Manu Asthana, CEO of PJM Interconnection, has emphasized the need for states to reform infrastructure siting and permitting to ensure adequate power supply. During the Summit on the State of PJM Interconnection, Asthana highlighted the challenges PJM faces in meeting power demands, particularly with the expected increase in load from data centers. Despite reforms in interconnection and capacity markets, PJM is experiencing tightening supply-demand conditions, leading to increased capacity prices. Asthana urged states to address issues within their control, such as infrastructure siting, to prevent power plants from facing hostile permitting regimes. He also suggested states consider proactive procurement for capacity to protect retail customers from market volatility.

Why It's Important?

The call for state-level action is crucial as PJM Interconnection spans 13 Mid-Atlantic and Midwestern states, impacting millions of consumers. The tightening supply-demand conditions and rising capacity prices have led to significant electricity bill increases, affecting both consumers and businesses. Addressing infrastructure siting and permitting reforms could alleviate these challenges, ensuring reliable power supply and stabilizing prices. The focus on state action highlights the importance of local governance in energy policy, which can significantly influence the broader energy landscape and economic stability.

What's Next?

Asthana's departure as CEO at the end of the year may lead to changes in PJM's approach to these challenges. States are expected to engage more actively in PJM's governance, potentially influencing future policies and reforms. The ongoing interconnection reform process, with a new cycle beginning in April, aims to expedite the study of interconnection requests, which could improve the integration of new power supplies. The outcome of these efforts will be pivotal in determining PJM's ability to meet future energy demands and maintain its role in the U.S. energy sector.