Head of biggest US power grid, PJM, to step down

By Laila Kearney

April 14 (Reuters) - The CEO of the largest U.S. power grid, PJM Interconnection, has decided to leave his post at the end of the year, the organization said on Monday, amid rising electricity prices that have drawn public scrutiny.

Manu Asthana, who has led the power market that spans 13 states in the Mid-Atlantic and Midwest, along with the District of Columbia, said he plans to move closer to family in Texas.

"My five-plus years at the helm of PJM have been some of the most fulfilling of my career," Asthana said in a statement issued by PJM.

The board of PJM has launched a search committee for the next CEO, and said Asthana provided strong leadership during a time of significant changes in the electricity industry.

"Under his leadership, PJM successfully navigated the COVID-19 pandemic, significant market reforms, interconnection process enhancements, the buildout of a robust risk management function, and the delivery of world-class grid reliability through a variety of extreme weather events," said PJM Board Chair Mark Takahashi.

The PJM market covers more than 67 million Americans and includes the world's largest data center hub in Northern Virginia. In recent years, the organization has struggled with a tightening balance of supply and demand as the retirement of old power plants outpaces the addition of new electricity supplies.

Last July, PJM announced the results of its capacity auction, which determines prices paid to power plants to operate at time of peaking demand, that were more than 800% higher than the previous year. It cited a shrinking supply of fossil-fired power plants, which operate around-the-clock, as the main reason for surging prices.

The capacity auction drew widespread scrutiny, including consumer advocates concerned about spiking power bills, and threats by the governor of Pennsylvania - the country's biggest electricity exporter - to leave PJM.

Environmental groups including Sierra Club and Earthjustice also filed a complaint with the Federal Energy Regulatory Commission, alleging that PJM drove up capacity prices partly by unjustifiably excluding certain power plants, leading PJM to delay its 2024 capacity auction and implement market reforms.