PJM Interconnection Company Profile

Background

PJM Interconnection LLC (PJM) is a regional transmission organization (RTO) that coordinates the movement of wholesale electricity across all or parts of 13 states and the District of Columbia, serving approximately 65 million people. Established in 1927, PJM operates the largest competitive wholesale electricity market in the world, managing a high-voltage electric grid that ensures reliable and efficient power delivery.

Key Strategic Focus

PJM's strategic objectives encompass:

Reliable Grid Operations: Ensuring the continuous and secure operation of the transmission system.

Competitive Wholesale Markets: Administering fair and efficient electricity markets to promote economic benefits.

Infrastructure Planning: Conducting long-term regional planning to identify cost-effective grid improvements.

PJM serves a diverse range of markets, including residential, commercial, and industrial sectors, across its extensive service territory.

Financials and Funding

As a non-profit entity regulated by the Federal Energy Regulatory Commission (FERC), PJM operates on a cost-recovery basis. Its expenses are recovered from its members through fixed rates outlined in PJM's Open Access Transmission Tariff. Any surplus revenues are refunded to members, ensuring a profit-neutral operation.

Pipeline Development

PJM is actively involved in several significant transmission projects aimed at enhancing grid reliability and accommodating increasing customer demand. Notably:

Valley Link Transmission Project: In collaboration with Dominion Energy and American Electric Power Company, PJM is developing approximately 260 miles of 765-kilovolt (kV) transmission line and two substations between Putnam County, West Virginia, and Frederick County, Maryland. Additionally, a 155-mile 765-kV transmission line and a substation between Campbell County and Fauquier County, Virginia, are planned.

These projects are designed to strengthen the electric grid and support regional economic growth.

Technological Platform and Innovation

PJM leverages advanced technologies and methodologies to maintain grid reliability and market efficiency:

Energy Management System (EMS): Implemented in 1968, the EMS enables real-time monitoring and control of transmission grid operations.

Locational Marginal Pricing (LMP): PJM utilizes LMP to determine energy prices, reflecting the cost of supplying the next increment of electricity demand at specific locations, thereby promoting efficient market operations.

Leadership Team

Manu Asthana serves as the President and CEO of PJM Interconnection. With over 21 years of experience in the electricity industry, Asthana has held leadership roles in power generation operations, energy trading, and risk management. He earned a Bachelor of Science in economics from The Wharton School at the University of Pennsylvania.

Leadership Changes

Manu Asthana assumed the role of President and CEO in January 2020, bringing extensive industry experience to PJM's leadership team.

Competitor Profile

Market Insights and Dynamics

PJM operates within a dynamic energy market characterized by increasing demand for renewable energy integration, evolving regulatory frameworks, and technological advancements. The organization faces challenges such as interconnection delays and the need for grid modernization to accommodate new energy resources.

Competitor Analysis

Key competitors include:

Midcontinent Independent System Operator (MISO): An RTO serving parts of the Midwest and Southern United States, managing a high-voltage transmission system and operating a real-time energy market.

Southwest Power Pool (SPP): An RTO overseeing the electric grid and wholesale power market in the central United States, ensuring reliable power supply and competitive electricity prices.

Strategic Collaborations and Partnerships

PJM actively engages in industry collaborations to enhance grid reliability and market efficiency:

GO15 Membership: As a founding member of GO15, PJM collaborates with the world's largest power grid operators to improve power system security and reliability.

Joint and Common Market Initiative: Partnering with MISO, PJM addresses issues associated with the operation of markets at the seam of their regions, aiming to achieve a robust, non-discriminatory wholesale electricity market.

Operational Insights

PJM's strategic considerations include:

Interconnection Process Reforms: Implementing a cluster-based approach to expedite the integration of renewable energy projects and reduce interconnection delays.

Grid Modernization: Investing in transmission infrastructure to enhance reliability and accommodate the evolving energy landscape.

Strategic Opportunities and Future Directions

PJM is positioned to capitalize on several strategic opportunities:

Renewable Energy Integration: Facilitating the transition to a cleaner energy grid by streamlining interconnection processes and supporting renewable energy projects.