Insight & Impact

To Our Members, Stakeholders & Employees

2024 was another very busy year for PJM, our Members and our broader stakeholder body. Together, we worked on several key enhancements to our operations, markets, and planning rules and processes, with a focus on maintaining reliability now and in the future. I want to thank every one of you who contributed your invaluable knowledge, expertise and time to help support PJM in its critical mission to keep the power flowing for 67 million people. Selected highlights of 2024 include:

• 1
  Grid Reliability: PJM and our Members maintained focus on safe and reliable operations of the bulk power system, delivering strong results through extreme cold associated with Winter Storms Gerri and Heather, one of the hottest summers in years, a solar eclipse, a collapse of the Francis Scott Key Bridge requiring an emergency outage of an important bulk power system component, a 4.8 magnitude earthquake with an epicenter in New Jersey, two geomagnetic disturbance actions, numerous extreme weather tornadic activities and the impacts of Hurricane Helene.
• 2
  Winter Storm Elliott Response: After any significant event, it is industry best practice to conduct a lessons-learned analysis in support of continuous improvement. PJM conducted such a study following Winter Storm Elliott and completed all 26 resulting recommendations that were identified for execution in 2024.
• 3
  Capacity Market Reform: PJM implemented the FERC-approved capacity market reforms that resulted from the 2023 Critical Issue Fast Path process in time for the 2025/2026 Base Residual Auction. The auction sent a strong price signal to spur investment in new generation and discourage retirements of existing generation, where possible. We also filed additional reforms with FERC targeted at the 2026/2027 Base Residual Auction.
• 4
  Interconnection Process Reform: PJM continued to transition to our new, streamlined interconnection process and made significant progress in working through the queue. The team cleared over 25 GW in energy through the Fast Lane interconnection study process. A total of approximately 50 GW of projects are now through the queue in various stages of completion. PJM also filed its Reliability Resource Initiative with FERC to support resource adequacy. Additionally, PJM advanced proposals related to Surplus Interconnection Service and CIR transfer.

Our collective initiatives are having an impact, and there are several promising signs in early 2025. However, demand growth appears to be accelerating, driven in large part by data center growth, and supply chains for grid components like transformers and turbines remain backlogged. We will have to continue to work together to find innovative ways to support the exciting economic development that underpins this demand growth, while at the same time prioritizing grid reliability and affordability.

As I said in my letter last year, these challenges are not unique to PJM. They are being felt by grid operators across the world. I remain optimistic that, working together, PJM, our Members and the broader stakeholder community are up to the challenge!

Sincerely,