In the first article of a two-part series, Howard Schneider explores PJM Interconnection, LLC, and its working relationship with state government.
The economic health and well-being of a state is closely tied to its power supply and the cost of that power. State regulators are strong advocates for abundant power at low cost. RTOs, such as PJM (and independent system operators) are primarily concerned with reliability and the functioning of competitive electricity markets. RTOs are key instrumentalities of how, when, and at what cost power is supplied in their region. Accordingly, the states have a significant interest in the RTOs that operate in their geographical footprint, and RTOs are important to state energy practices and policies.
As a result, since energy is critical to the states and they can influence, directly and indirectly, the power supply and its cost, an RTO must be cognizant of its constituent states’ policies and thinking on energy issues.
Energy Transition: Making money with renewables
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