As a regional transmission operator (RTO) looks at 67 million users in 13 states, PJM is the main duty of co -operation to ensure the reliability and security of the bulk electric power system and serve all the burden associated with it. This work has been very difficult recently, which gives PJM a quick stakeholder process to find large consumers to find a large amount of resources.
Issue
Addressing the PJM’s Board of Managers, David E -Mills Chair, PJM stakeholders sent on August 8, mainly from data centers, “offer both opportunities and challenges for regional grid.” Mills noted that PJM’s location, size, market opportunities, and system reliability make such consumers an attractive area to set up a shop.
The chair mills observed, “We keep watching the important activity of the burden on many of our utility.
PJM’s recent long -term burden predicted 32 GW (GW) peak growth from 2024 to 2030. About 30 GW from data centers.
As one can be expected, such an unprecedented demand, as the PJM has said, “significant pressure has been created and it has raised concerns about future resources.” Last summer, after a well -known canal in the coal mine of electricity auction, this July, the PJM’s reliability pricing model (RPM) for auctioning the delivery year 2026/2027 easily hit the federal cap in all zones. The PJM committed about 100 % of the supply offered to meet the customer’s expected needs, and its latest burden forecast reflects even the tough conditions, primarily attributed to the expected integration of a large burden.
Electricity prices are rising almost everywhere, especially in PJM pockets, where some consumers (like me!) Have seen that the bills increase by 20 % or more. To make matters more complicated, the PJM has pointed out the fact that there is a huge cone of uncertainty around the pace of future development and dimensions.
But the RTO has a two -dimensional project.
Queue
The PJM has not taken new coordination requests for years as it has set up how to handle the massive arrival of applications. Chair Mills reports that their organization’s 2022 mutual connectivity reforms have resulted in more than 140,000 MW (MW) of row generation. A total of 46,000 MW new generation has signed mutual contact agreements and is ready to build. The PJM expects the remaining bilateral transfer line to be completely cleansed over the next six to 18 months, though many of these projects are being allowed with obstacles and supply chain back blogs with the help of PJM control.
Through the RTO’s recent reliability Resource Initiative, the PJM will take action on the 11,000 MW of additional generation, which helps in the situation, but the mills and the board have admitted that this decade and more generation will need even more generation. A recent survey of PJM members and stakeholders reflects a growing consensus that finding a large amount of solutions to potential resources created by rapidly connecting a large burden should be one of the PJM’s top priorities. The PJM agrees.
Critical problem fast process
In his letter to stakeholders, PJM Chair Mills has announced a decision to implement a sharp stakeholder process mechanism to the critical issue of the stakeholder to seek the consensus of the stakeholder, which will make the PJM board’s decision on a major burden on December 202, which will make the PJM board’s decision.
As part of the start of CIFP, the board needs to identify the realm of initiative. The main focus of the board in this effort is based on the concepts introduced in the large burden workshop on May 9, 2025, and includes:
- Resources Eligibility: The PJM board wants to develop reliable solutions to ensure that the large burden can be integrated quickly and reliably, without causing resources instability. Possible solutions can be transitioned to nature, permanent, or both combinations. These solutions may include adjustments to the load used and/or by RPM auction, if such a burden does not support capacity. In addition, the board wants stakeholders to consider preferring sufficient amounts of existing resources, including the response to demand and options for consumers to bring a new generation to meet their burden needs. PJM also encourages stakeholders to prioritize competitive, market -based solutions.
- The quality of reliability: If applied to the selected solution, the board believes that the quality should be set for it when the reliability -based solution is triggered and for that when it is no longer necessary.
- Rules of Mutual Relationships: The Board encourages stakeholders to consider whether further changes in the rules of co -operation that target the challenges in large quantities of resources should be taken forward.
- Coordination: The board believes that the proper harmony between the PJM and the parties that sets the deals/agreements with the major burden, the PJM states, and the affected users should be considered. This includes recognizing the boundaries of the jurisdiction with the current burden companies and/or the distribution companies.
- Time: The board believes that any solution should be effective in time to implement the RPM base residual auction, which will be made for the year of the 2028/2029 delivery year. Initial, Pre -CIFP Workshop: August 18, 2025; FERC Fileing Target: Dec 2025; Implementation: 2028/2029 bra.
Before the formal CIFP process, the PJM will schedule the aforementioned reference workshop that will serve as a forum to seek opinions on the proposed CIFP’s proposed scope for PJM and submit its initial suggestion.
Can PJM Data Center users find a way to fast track and still keep the lights for the rest of their users? And can it do it without reaching rates? There is another FERC Capted Power Auction in the Welle Room to work with the RTO. Then the market will decide whether the PJM has implemented the right solution.
