PJM grid faces major reform pressure after July 24 power disruption, triggering calls for transparency and independence upgrades.

A massive power disconnect from the largest U.S. electric grid rippled across the country on Wednesday, July 22, highlighting the nation's vulnerability to sudden demand drops from data centers and cryptocurrency miners. The outage, triggered by roughly 3 gigawatts of demand abruptly disconnecting in northern Virginia, caused a voltage disturbance that was felt from Washington, D.C., to Chicago, leaving customers with flickering lights across the region.

The incident has prompted urgent action from U.S. energy officials, who are now urging the Federal Energy Regulatory Commission to implement major reforms at PJM Interconnection, the operator of the country's largest power grid. These proposed reforms include extending board terms to six to nine years, making board decisions public, and granting governors in the PJM region greater influence over pricing and operations—moves aimed at enhancing both independence and transparency in the system's governance.

PJM Interconnection, which serves 67 million people across the Mid-Atlantic and Midwest, has faced mounting pressure as data-center demand surges while few new electricity supplies come online. The grid operator has struggled with persistent supply shortages and rising prices, a mismatch that the recent outage has thrust into sharp focus for policymakers and regulators. In response, PJM has already outlined its own measures to address the crisis, including plans to add generation capacity and accelerate data-center connection timelines.