Corporate Strategy and Value

Five-Year Corporate Strategy

PJM’s enterprise strategy sets the organization’s direction over the next five years, beginning in 2026.

PJM is a mission-driven organization that serves the public interest. Our mandate is clear: Reliability is our North Star. Reliably serving electricity to the 67 million customers who depend on us to keep the lights on requires having enough generation resources on the system. We will take active leadership on this issue by orchestrating resource adequacy – working with our stakeholders to maintain and incentivize enough generation to serve demand as well as the transmission infrastructure to deliver it.

PJM also knows that affordability matters. We recognize the pressure that rising electricity costs place on families and businesses. We will act within our power to help address this challenge: by providing power reliably and cost-effectively through competitive markets and decisions in planning and operations, while providing insight into PJM and system costs. Although PJM does not set retail rates, we will act within our power to deliver electricity reliably and cost-effectively.

To deliver on this mandate, we will focus on four priorities:

  1. Reliably operate an increasingly dynamic grid
  2. Ensure durable market incentives & state alignment
  3. Proactively adapt planning processes
  4. Improve decision-making efficiency

Success will require a modern technology backbone that deploys AI and automation; a workforce empowered to move faster and think differently; and transparent communication with members, stakeholders and the people who depend on us.

PJM Five-Year Corporate Strategy PDF

The Value of PJM

Since 1927, PJM Interconnection has been providing power reliably and cost-effectively by sharing electricity across state lines. Working with local utilities, PJM provides reliable power from New Jersey to North Carolina and west to Illinois, serving 13 states and D.C.

PJM’s operations, markets and planning functions produce annual savings of $5 billion for customers by leveraging scale, competition and market transparency.

Core efficiencies include:

Reliability: PJM’s large footprint enables cost-effective planning processes that consider the transmission needs of the whole region rather than individual states or separate utility services.

Generation investment: PJM operates across a large geographic footprint, pooling its available resources, which mitigates the risk of generator outages and improves reliability.

Integrating more efficient resources: PJM’s competitive markets facilitate newer, more efficient resources to replace older, less efficient generation.

Lower energy production costs: PJM economically dispatches its generation fleet to minimize the total cost of generation needed to meet demand.

Demand Response: This program pays customers to reduce their electricity usage when called upon, helping balance supply and demand on the grid in times of system stress.

The Value of PJM PDF