Continuing the shakeup at PJM Interconnection, which manages the mid-Atlantic electricity grid, CEO Phillip Harris is out. The company, which has been conducting an internal inquiry on allegations that PJM compromised the independence of its grid watchdog, announced Harris's exit at 1:30. It was billed as a retirement. Harris is 59.

I asked whether Harris's departure is related to the internal inquiry. “I don’t have a specific reason for it," PJM spokesman Terry Williamson told me. "There was a discussion between Phil and the board.” Williamson said he didn't have a timetable on when the internal inquiry would be complete. Harris is the third top PJM exec to leave the organization in three months. Chief operating officer Audrey Zibelman left in May to take a job with Nodal Exchange, an electricity financier. General Counsel F. John "Jack" Hagele retired May. 1. The fact that PJM named no permanent replacement for Harris suggests his departure was not planned.

One executive who's still there is Joseph Bowring, the market monitor who has produced copious evidence showing that Zibelman and other PJM bosses forced him to alter reports and otherwise checked him when he saw evidence of electric-generation companies using monopoly power to charge exorbitant prices. Bowring also produced emails and other evidence showing that Harris was contemplating replacing Bowring's unit with an outside contractor. Presumably such a plan is defunct.

If Harris's departure means that PJM's board takes Bowring's allegations seriously and will give him more leeway and authority, that's a good thing. Even better, however, is a recent proposal by the Federal Energy Regulatory Commission to make Bowring and other grid monitors independent. From the PJM press release:

"Valley Forge, Pa. – July 23, 2007) - The PJM Board of Managers today announced that President and CEO Phillip G. Harris has elected to retire from PJM. "The Board appointed Karl V. Pfirrmann, presently senior vice president, as interim President and CEO. A special Board committee will be formed to conduct an executive search for the position.

"The Board also has elected Howard Schneider as Chairman and Lynn Eury as Vice Chairman of the Board.

 "Pfirrmann has 37 years of experience in the electric utility industry and joined PJM in 2003 from Allegheny Power where he was vice president of system planning and operation. A native of Cincinnati, Ohio, he graduated with a degree in electrical engineering from Carnegie-Mellon University.

"The Board’s statement follows:

 "“We are announcing that President Phillip G. Harris has elected to retire from PJM. We want to acknowledge Mr. Harris’ considerable contributions to PJM and our industry over his many years of service. Without his guidance and vision, PJM would not enjoy the reputation for technological and operational excellence that has made it the benchmark for regional transmission organizations the world over.

"“During this transition, we want to reassure our stakeholders, as well as federal and state regulators, of our ongoing commitment to reliable operation of the grid and competitive wholesale markets. As always, the one constant is the quality of our fine employees who diligently and faithfully continue to perform their critical functions every day. We are confident that the organization is in capable hands with Karl Pfirrmann at the helm.”"