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FERC Orders PJM to Rewrite Rules for Co‑Located Data Centers and Generation

The move responds to surging data‑center demand by launching near‑term filings followed by a paper hearing to define rates and safeguards.

Overview

  • The Dec. 18 order finds PJM’s behind‑the‑meter generation rules unjust and requires changes that assess only the portion of co‑located generation intended for grid injection.
  • PJM must file tariff revisions by Jan. 19, 2026 to enable provisional interconnection, requests below nameplate capacity, potential process acceleration, and surplus interconnection service.
  • FERC directs PJM to design three new transmission services—Firm Contract Demand, Non‑Firm Contract Demand, and Interim Non‑Firm—with tariff filings due Feb. 16, 2026.
  • The order lists 11 questions PJM must answer on rates, terms, and operational conditions, with a paper‑hearing schedule set for responses on Mar. 18, 2026 and replies on Apr. 17, 2026.
  • Commissioners approved the order unanimously and emphasized protections against cost shifts to retail customers, signaling close scrutiny of cost allocation in implementation.