I’m thrilled to sit down with Christopher Hailstone, a seasoned expert in energy management and renewable energy, who brings a wealth of knowledge on electricity delivery, grid reliability, and security. As a utilities specialist, Christopher has deep insights into the evolving challenges facing regional transmission organizations like PJM Interconnection. In this conversation, we dive into the critical issues of skyrocketing electricity demand driven by the digital economy, the affordability concerns impacting millions of consumers, and the innovative strategies being deployed to balance supply and demand. We also explore PJM’s collaborative efforts with stakeholders and states to ensure a reliable and sustainable energy future.
What can you tell us about PJM Interconnection’s role in keeping the power flowing across such a vast region?
Well, PJM Interconnection is essentially the backbone of electricity delivery for 67 million people across 13 states and Washington, D.C. Our core mission is to ensure the lights stay on by managing the flow of power through a complex grid system. We operate a competitive wholesale electricity market, coordinate the movement of power between generators and utilities, and plan for future needs to maintain reliability. It’s a 24/7 operation that involves balancing supply and demand in real time while anticipating challenges like extreme weather or sudden spikes in usage.
How has the recent surge in electricity demand, particularly from data centers, changed the way PJM operates?
The explosion of demand from data centers, fueled by the rise of artificial intelligence and the digital economy, has been a game-changer. These facilities consume massive amounts of power, often equivalent to small cities, and their growth has put unprecedented pressure on our grid. Operationally, we’ve had to refine our load forecasting models to account for these large, concentrated loads and work closely with utilities to understand where and when new demand will hit. It’s a constant juggling act to ensure we have enough capacity without overbuilding infrastructure.
What do you see as the most pressing challenges in meeting this growing demand while keeping the grid reliable?
The biggest challenge is the timing mismatch between demand growth and the availability of new supply or transmission infrastructure. We’re seeing existing power plants retire due to policy shifts or aging equipment, while new projects face delays in getting connected. If we can’t bring enough generation online fast enough, reliability could be at risk during peak demand periods. There’s also the uncertainty of how quickly technologies like AI will scale up their energy needs. We’re laser-focused on planning ahead, but it’s a tightrope walk.
Can you share more about how PJM is collaborating with stakeholders to tackle issues like data center growth?
Absolutely. We’ve initiated the Critical Issue Fast Path stakeholder process, which is a structured way to bring together utilities, developers, and other parties to address urgent challenges like large load additions from data centers. It’s about finding practical solutions quickly through dialogue and consensus. We’re also engaging with state governors through a Governors’ Collaborative, where we facilitate discussions on governance, reliability, and affordability. The goal is to align on policies and strategies that support both economic growth and grid stability.
Affordability has become a hot topic in the PJM region. What’s behind the rising costs consumers are facing?
Affordability is a real concern, and it largely stems from tighter supply and demand dynamics. When demand rises faster than supply, wholesale market prices increase, and those costs eventually trickle down to consumers. We’ve also seen delays in connecting new power sources to the grid, often due to regulatory hurdles or lengthy permitting processes at the state and federal levels. On top of that, the retirement of older plants has reduced available capacity, which further drives up prices. It’s a complex issue that requires coordinated action across multiple fronts.
PJM has made significant strides in clearing its generation interconnection queue. How did you achieve that progress?
We’ve worked hard to streamline our interconnection process, which is essentially the pipeline for new power projects to join the grid. We started with a backlog of over 200 gigawatts of projects and have reduced it to about 46 gigawatts. A big part of this was prioritizing shovel-ready projects through initiatives like the Reliability Resource Initiative, which fast-tracks studies for projects that can come online sooner. Today, we have 63 gigawatts of projects with signed agreements, and we’re aiming for a one- to two-year turnaround for new queue entries moving forward.
I’ve heard about PJM’s use of AI in the interconnection process. Can you explain how that’s making a difference?
We’ve partnered with innovative tech teams to integrate artificial intelligence into our interconnection studies, which are detailed analyses of how new projects will impact the grid. AI helps us model scenarios faster and identify potential issues like overloads or bottlenecks with greater precision. By speeding up these studies, we can approve projects more quickly and get new supply connected sooner. It’s still early days, but we expect this to shave significant time off the process, which is critical given the urgent need for more capacity.
How do state policies and frameworks influence PJM’s ability to address supply and demand challenges?
States play a huge role because they control key aspects like retail pricing, infrastructure permitting, and energy efficiency programs. For instance, state decisions on siting and approving new generation or transmission projects directly impact how quickly we can expand capacity. Some states have also introduced creative measures, like financial commitments for data centers to ensure accurate load forecasts, or rebates to shield residential consumers from high costs. Our job at PJM is to provide data and support to help states make informed decisions that balance affordability and reliability.
What’s your forecast for the future of grid reliability and affordability in the PJM region over the next decade?
Looking ahead, I think we’re at a pivotal moment. If we can accelerate the buildout of new supply—whether it’s renewables, natural gas, or other sources—and modernize transmission infrastructure, I’m optimistic we can maintain reliability even with soaring demand. However, affordability will remain a challenge unless we see more supply come online to ease market prices. Collaboration between grid operators like PJM, states, and industry players will be key. I expect technology, like AI and advanced grid management tools, to play a bigger role in helping us stay ahead of the curve, but it’s going to take a collective effort to navigate this transition successfully.
