States Introduce Legislation to Increase Transparency in PJM Interconnection

This session, at least six states are pursuing legislation to increase and promote transparency surrounding electric utilities’ involvement in PJM Interconnection – the Regional Transmission Organization (RTO), spanning 13 states and DC, that manages the power grid from the Midwest to the Mid-Atlantic region. States proposing legislation include West Virginia, Illinois, Maryland, Virginia, Indiana, and Delaware. 

• Why it matters: Regional Transmission Organizations manage the energy capacity market, ensuring electricity supply meets demand while maintaining adequate reserves. Decisions made by PJM directly impact the consumer cost of electricity and a state’s ability to implement clean energy goals. Coordination between RTOs and states is paramount for ensuring the best outcome for consumers.

Key Components

To date, at least seven pieces of legislation have been introduced seeking to require utilities to reveal their PJM votes. In an effort to boost transparency among public energy service providers and within the RTO itself, all six establish a reporting requirement for utilities to disclose their votes annually. 

Legislators in West Virginia, Illinois, Maryland, Virginia, Indiana, Delaware, and Pennsylvania have proposed legislation requiring each utility to submit an annual report to their respective state Public Service Commissions regarding votes cast in any PJM meeting in the prior calendar year and an explanation for how that vote supported public interest. Thus far, Virginia State Delegate Amy Laufer’s HB 2003 has been defeated in the Labor and Commerce Committee and Indiana State Representative Sue Errignton’s HB 1301 was defeated in the Utilities, Energy and Telecommunications Committee. But legislators are not giving up easily. 

“This year was a learning year for me. I’m not giving up,” says Representative Sue Errington. “I’ll refine the language and file a bill again next year.”

What Legislators Say

Last year, legislators from five states introduced similar legislation, citing spiking electric rates and RTO decisions that directly impact clean energy deployment. 

“Like many Americans, Delawareans across our state have received exorbitantly high energy bills this winter. While there are many potential contributing factors for these price spikes, it’s imperative that we as lawmakers explore this problem from every angle,” says Delaware Senator Stephanie Hansen. “Delaware has joined several states in calling on PJM to increase its transparency standards, so that consumers may have a better understanding about the factors impacting their energy bills.”

Illinois State Representative Joyce Mason, Maryland Delegate Lorgin Charkoudian, and West Virginia State Delegate Evan Hansen – who all introduced voting transparency legislation (HB4747, HB0505, and HB5101 respectively) last year – are introducing similar legislation again this year. 

“In the last few years, we have witnessed high electricity rates and resource adequacy challenges that are a direct result of the PJM’s rules, structures, and planning failures,” said Maryland Delegate Lorig Charkoudian. “It is imperative that we get a window into the decision-making process that leads to these harms to our communities. This bill will provide an element of transparency, which is critical to reforming the system.” Delegate Charkoudian introduced HB0121 this year–to date, it passed the Senate and awaits further review. 

Looking Ahead

State leaders are recognizing the need for stronger collaboration and communication among states, RTOs, and utilities to reduce the impacts of climate change and to ensure dependable, affordable electricity.