PJM Interconnection executives told a joint state hearing that the regional grid operator has advanced a set of market and queue reforms but warned those changes take time to lower prices.

PJM’s message: the system faces a changed demand picture and a backlog of interconnection applications. Asim Haq, senior vice president for governmental member services, said PJM’s footprint historically had flat demand and abundant supply, which allowed policies to be implemented without tight short‑term consequences. In the last two to three years, Haq said, demand has surged in certain zones because of large data center projects and electrification trends. That faster‑than‑expected growth, together with retirements of some thermal units and recent PJM market‑rule adjustments, contributed to the higher capacity clearing price.

Actions PJM described

- Queue reforms: PJM reported that 50 gigawatts of projects have cleared under its updated process, with additional tranches (18 GW this year, 50 GW next year) planned. Haq said reforms move toward a “first ready, first out” model and offer a separate reliability lane to accelerate shovel‑ready projects.
- Reliability Resource Initiative: PJM opened a window to receive applications for high‑reliability resources; the window attracted 94 applications totaling roughly 27 GW, Haq said. PJM has sought FERC approval to process and incent the most reliability‑value resources.
- Market‑rule filings: PJM said it has filed and will file market‑rule changes with the Federal Energy Regulatory Commission intended to count renewables/storage appropriately in the capacity construct and to include reliability‑must‑run units.

Limits and timelines

PJM staff acknowledged the reforms will not immediately reverse retail price effects. Haq told members that solar and storage with completed interconnection approvals can come online fastest (2–3 years), while new natural‑gas plants typically require 5–7 years. He urged states to consider clearer data and gating rules for major new loads—such as data centers—so that load forecasts better reflect firm commitments rather than speculative projects.

Why the committee pressed

Lawmakers repeatedly asked how PJM and states can prevent speculative projects from skewing planning and pricing, and whether states can require large loads to secure firm generation or financial commitments before they enter the queue. PJM staff pointed to examples in Ohio and Indiana where states have used gating criteria for large load requests and said such policies can improve forecasting.

Outlook

PJM framed its role as a grid operator regulated by FERC; its officials said they can propose market‑rule changes but ultimate authority rests with FERC. PJM representatives urged continued multi‑state coordination and faster state‑level action to accelerate permitted projects and demand‑response programs while market and queue reforms are implemented.