PJM Interconnection LLC, the largest power grid operator in the United States, may have grown too big to function effectively, Federal Energy Regulatory Commission Chair Laura Swett said at the grid operator's annual meeting. Swett called for urgent reform, suggesting the organization's sheer scale has created operational challenges that compromise its ability to manage the grid reliably.

PJM coordinates electricity flow across 13 states and the District of Columbia, serving tens of millions of customers. The grid operator's vast footprint, while enabling economies of scale and efficient power distribution, now presents coordination complexities that concern regulators. This marks a rare instance of the top federal energy regulator publicly questioning whether consolidation in grid management has gone too far.

For utility investors and energy markets, Swett's comments signal potential regulatory intervention that could reshape how PJM operates. Any structural changes to the grid operator could affect transmission costs, power pricing mechanisms, and the competitive landscape for electricity providers across the eastern United States.