OREANDA-NEWS. The PJM Interconnection will promote executive vice president for markets Andrew Ott to chief executive when Terry Boston retires on 31 December.

Ott has worked at PJM for 18 years and previously worked for 13 years in transmission planning and operations at utility General Public Utilities, now known as FirstEnergy.

The operator of the largest US power grid credits Ott with helping design and implement key elements of the PJM wholesale electricity markets, including day-ahead energy and capacity markets and financial transmission rights.

"Andy is recognized internationally as a power industry leader and expert, and he will be an outstanding chief executive for PJM and its stakeholders," PJM board chairman Howard Schneider said.

Boston announced his retirement in February, after more than seven years heading the regional transmission organization. PJM serves part or all of 13 states in the mid-Atlantic and the Great Lakes regions, plus the District of Columbia.

The transition period for the leadership of PJM coincides with major transformations of the grid as gigawatts of coal capacity retire as a result of federal environmental regulations. Coal is the primary generating fuel but natural gas is making inroads as coal capacity shuts down and cheap shale gas supply from Appalachia floods the markets.

PJM is pushing a plan to improve the performance of capacity resources during extreme weather that could translate into a boon for coal and nuclear operators. The forward capacity auction for the 2018-19 period, scheduled for May, had to be postponed while federal energy regulators consider the capacity performance proposal. Complicating the matter is the legal uncertainty over the grid's 11GW of demand response capacity and whether they can participate in wholesale power markets.