PJM Members Back Governance Proposal That Expands Industry Control as FERC Deadline Expires
Legislators say vote fails to deliver the independence, state voice, transparency, and accountability FERC demanded
Rep. Danielle Friel Otten October 1, 2026 | 1:31 PM
AUDUBON, PA, Oct. 1 – The bipartisan PJM Legislators’ Collaborative sharply criticized yesterday’s vote by PJM’s Members Committee to advance the Members’ governance proposal, saying the package fails to address the fundamental governance problems that prompted federal intervention and instead gives PJM’s industry members additional power over critical decisions.
The vote comes on the day of the deadline set by Federal Energy Regulatory Commission (FERC) Chair Laura Swett for PJM stakeholders to reach meaningful governance reforms. Chair Swett has described PJM as facing a serious legitimacy crisis and called for reforms that increase PJM’s independence, remove Member impediments to swift action, and give states meaningful input into decisions affecting their constituents.
“Today was PJM’s opportunity to show that it heard Chairwoman Swett’s warning. Instead, Members responded to a directive to strengthen PJM’s independence and reduce barriers to decisive action by voting themselves veto power over the very decisions at issue,” said Pennsylvania State Representative Danielle Friel Otten, speaking on behalf of the PJM Legislators’ Collaborative. “That does not resolve PJM’s legitimacy crisis. It demonstrates exactly why this process became necessary in the first place.”
The Collaborative entered the process with five priorities: a public-interest governance mandate, a formal governance role for states that includes legislators alongside governors and regulators, a state role in nominating PJM Board members, an end to blocking coalitions in the stakeholder process, and greater transparency and accountability.
“PJM’s decisions shape what families pay for electricity, whether our grid is reliable, and whether states can carry out the energy policies their residents elected them to pursue,” said Maryland Senator Katie Fry Hester. “States cannot be treated as spectators in a system whose decisions have such enormous consequences for our constituents. A credible governance structure has to give the public and the officials who answer to them a meaningful voice at the table.”
Of particular concern is the Members’ proposal to add another Members Committee veto to the state “jump ball” process for resource adequacy. The Collaborative said that runs directly counter to FERC’s call for greater PJM independence, fewer Member impediments to action, and a stronger role for states. Of the proposals considered, the consumer advocates’ framework came closest to the principles legislators laid out, including by protecting the state process from an additional Members Committee veto.
“We have known for a long time that PJM is controlled by the for-profit energy and transmission companies that profit by slow-walking the clean energy transition and keeping consumer prices high. Today’s vote by those same members made it clear that these members are willing to vote to protect their profits, even in the face of FERC directing them to reform the system,” said Maryland Delegate Lorig Charkoudian.
With the September deadline now reached, the governance debate moves to FERC. The Collaborative said Wednesday’s vote represents a missed opportunity for PJM’s Members to reform the system themselves and increases the likelihood that the ultimate governance structure will instead be determined through federal action and potential litigation.
The Collaborative remains prepared to work with FERC, PJM, the PJM Governors’ Collaborative, OPSI, consumer advocates, and other stakeholders to advance reforms that protect the public interest. The legislators emphasized that PJM’s decisions affect electricity costs and reliability for 67 million people, as well as businesses, school districts, and municipalities across the region.
About the PJM Legislators’ Collaborative
The PJM Legislators’ Collaborative is a bipartisan coalition of state-level elected officials from across PJM’s 13-state and District of Columbia footprint. The coalition advocates for the interests of the 67 million retail customers served by PJM, with a focus on reliability, affordability, transparency, state authority, and ratepayer protection.
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MEDIA CONTACT: Bridget O’Toole | katiefry.hester@senate.maryland.gov | 240-566-6277