Letter From the Board

Planning:

• Interconnection Process Reform – By the end of 2025, PJM had processed approximately 170 GW of projects in our transition queue backlog with 30 GW remaining for processing in 2026. Approximately 54 GW of new generation projects have completed PJM's interconnection study process, meaning they have either signed or been offered interconnection agreements and are free to proceed to construction. Historically, more than half of the projects that enter the queue are withdrawn after study completion for commercial, permitting or siting reasons, reinforcing the value of PJM’s reforms to prioritize viable projects and accelerating those most likely to be built.
• Resource Adequacy – Multiple actions sought to maximize existing generation capacity and attract new generation, led by the Reliability Resource Initiative, designed to speed the connection of shovel-ready, high-reliability projects.
• Load Forecasts – PJM enhanced its load forecasting to better screen, standardize and streamline how Load Serving Entities assess new large loads.
• Long-Term Planning – PJM in December 2025 outlined a new long-term transmission planning process in compliance with FERC’s Order 1920. This is in addition to PJM’s traditional Regional Transmission Expansion Plan, which proposed or authorized a record number of projects in 2025.

Markets:

• Capacity Market –
  • PJM cleared two competitive capacity auctions, moving the auction schedule closer to the three-year-advance schedule on which it was designed. Higher capacity prices reflected a supply-demand imbalance and the urgent need for new supply. Prices appeared to have driven market responses evidenced by withdrawals of planned generator retirements, uprates to existing generators and the revival of shuttered generators.
  • The capacity of the resources procured in the 2027/2028 Auction, including the Fixed Resource Requirement, were short of PJM’s reliability requirement by 6,517 MW, meaning that the committed supply was less than what would be required to meet the one-event-in-10-year reliability standard of a 20% reserve margin. This does not necessarily mean that the PJM system will be unable to serve load reliability in the delivery year. PJM continues to hold a reserve margin of 14.4%.
• Collaborative Policy and Market Risk Management –
  • PJM continued to engage collaboratively with states and stakeholders through the Periodic Review process, supporting proposed updates to capacity market rules intended to balance wholesale electricity costs with the need to attract sustained investment in new generation essential for long-term grid reliability.
  • PJM addressed growing financial and operational risks across the system. Stakeholders overwhelmingly supported the implementation of enhanced minimum capitalization requirements for market participants, reinforcing protections for PJM's competitive markets and strengthening system resilience.

Operations:

• Winter and Summer Preparedness – Our System Operations Team managed through several increasingly complex situations to preserve reliability through record-setting peaks in both winter and summer. On Jan. 22, PJM set an all-time winter peak of 143,848 MW, surpassing PJM's prior all-time cold season record of 143,434 MW set in 2015. Then in June, a heat wave gave rise to PJM's third- and fifth-highest all-time summer peaks, 161,297 MW and 160,941 MW, respectively.
• Evolving Rules and Practices – PJM and its Members continued redefining markets rules and operations protocols to respond to the changing characteristics of the fleet and shifting risk profiles based on extreme weather.

PJM Board of Managers

Committee assignments as of 2025