Independence and neutrality are the core of PJM Interconnection’s business operations. order to create a robust and competitive electric power market, PJM treats all parties equitably. Developing an atmosphere of trust through non-discriminatory practices is essential to building an effective and viable market.

PJM is committed to serving the broad needs of its diverse membership. A highly structured stakeholder process is employed to give voice to each member, to collectively identify and investigate alternatives about business and regulatory issues, and to pursue consensus in decision-making. PJM commitment to responsiveness to its stakeholders and the ultimate electric consumer is underpinned by an effective Stakeholder Process.

Foundational to the stakeholder process is the two-tiered Governance structure headed by PJM’s Board of Managers and the Members Committee, the stakeholder body responsible for advising the Board on business matters and overseeing a hierarchy of committees and working groups that collaborate on the details of business policy and operational issues. PJM’s two-tiered governance structure – the PJM Board and the Members Committee – ensures independent decisions.

PJM works closely with state regulatory commissions to identify and respond to local matters.

PJM’s responsiveness to stakeholders is evidenced in many ways and meets the FERC’s four criteria for assessment of responsiveness: inclusiveness, fairness in balancing diverse interests, representation of minority interests, and ongoing responsiveness.

Key methods include:

• Ex parte communication from members to the Board is posted publicly on pjm.com.
• The Liaison Committee meets in conjunction with scheduled Board meetings offering members a more intimate forum to discuss topics of interest with the Board face-to-face.
• Semi-annual General Sessions provide opportunities for the entire membership to interact with the Board to gain a mutual understanding about PJM’s current and future business operations and strategy.
• PJM’s Annual Meeting provides another joint-opportunity for members and the Board to collaborate on issues and reflect on company performance.
• Attendance at each Members Committee meeting by at least 2 Board members further helps to build rapport between the Board and the membership and ensure that member voices are heard on issues.

PJM Board
The independent PJM Board is charged with ensuring that PJM safely and reliably operates the grid and creates and operates fair energy markets. To establish neutrality, the Board cannot have any personal affiliation or ongoing professional relationship with or any financial stake in any PJM market participant.

The Board ensures that no member or group of members has undue influence. It also is required to prevent the undue exercise of market power by any market participant. To support this goal, PJM’s independent Market Monitoring Unit constantly analyzes market data and takes action to make structural or rule changes to resolve any issues.

Members Committee
The Members Committee, on which each member/customer has a representative, provides advice to the Board by proposing and voting on changes and new programs. The committee is composed of five voting sectors representing power generators, transmission owners, electric distributors, power marketers and consumers. Only one affiliate of a member corporate entity may vote in the committee.

To ensure that the Board has a full understanding of member views on issues, a Liaison Committee meets with the Board regularly. It includes representatives from each of the five membership sectors.

Other committees and user groups provide ongoing forums for issue resolution through discussion and negotiation. Through this collaborative stakeholder process, PJM serves as mediator, helping competitors to reach consensus and move forward.