Interim CEO: Credit Policy Change, Market Review Top Priorities

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PJM Interim President and CEO Susan J. Riley told the Markets & Reliability Committee Thursday that her first few weeks on the job have given her a better appreciation of how needs are changing throughout the energy industry – from companies to states to federal regulators.

“The pace of change is faster than what we’ve seen in the past,” said Riley, a 14-year member of the PJM Board of Managers who is temporarily filling the post of CEO following the retirement of Andy Ott July 1. “We want to make sure our value proposition changes as your needs change.”

Riley has been meeting with stakeholders over her first three weeks, and she said she looks forward to working with those stakeholders over the next few months to understand their needs, help effectuate change and strengthen relationships with them, state regulators and the independent market monitor.

Riley is also working with the PJM team and the Financial Risk Mitigation Senior Task Force to strengthen PJM’s credit policies. “That is urgent,” Riley said.

To that end, she asked stakeholders for their help in keeping two distinct initiatives separate: market design changes and credit policy changes.

Riley told members that the Board is committed to a comprehensive review of the markets, but the process is complex. The review will take time and shouldn’t come at the expense of badly needed credit reforms.

PJM will be retaining expert advisers to assist in the process, she said. In addition, PJM has hired Nigeria Poole Bloczynski, who will begin work July 29 in the newly created role of chief risk officer.

Riley concluded by saying that PJM has the “highest concentration of really smart, highly ethical, highly committed people that I’ve ever worked with, anywhere, and I don’t want to lose sight of that as we move forward in making necessary changes. “I think you, as our members, are in very good hands here.”