Authored by Todd Snitchler via RealClearEnergy,
There's a critique of PJM making the rounds: PJM - the largest grid operator in the United States - is too big. There are too many state interests at play, and PJM doesn't have the ability to function cohesively or quickly enough. FERC even scheduled a governance technical conference this month to examine whether PJM's stakeholder structure can move fast enough to respond to demand. The reality is that policy disagreements at the state level are dressed up as a procedural defect with the grid, opening the way for critics to point their reforms at the wrong target.
Disagreements at the state level are just what you'd expect, pitting those that generate enough power to export against those that depend on imports. Pennsylvania is PJM's energy workhorse, shipping out roughly a quarter of everything it generates. Illinois, West Virginia, and Michigan also produce more than they consume. The others - Virginia, Maryland, New Jersey, and Delaware - are net importers, and increasingly so as data centers expand across their footprints.
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