Overview
- FERC found PJM’s open-access tariff unjust and unreasonable for lacking clear terms on serving colocated load and ordered detailed revisions.
- PJM must design rates and conditions for multiple colocation scenarios, which could require data centers to fund transmission upgrades or pay to replace power diverted from the grid.
- The order introduces options such as interim non-firm service that allows faster hookups but exposes colocated facilities to curtailment during grid stress.
- Although limited to PJM, the decision is viewed as an initial template for handling surging AI-driven demand as PJM reports record-high capacity prices after roughly a 1,000% jump in recent years.
- Power plant owners welcomed the clarity and saw share gains, while utilities and consumer advocates warn of cost shifts; the case traces back to a proposed Amazon-Susquehanna nuclear colocation deal.