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FERC Signals Fast Track as PJM Preps BYOG Filing and Backstop Plan for Surging Data‑Center Load

FERC indicated it will move quickly on PJM proposals aimed at accelerating new supply to address reliability risks and rising costs tied to large new loads.

Overview

  • PJM told stakeholders it will make an imminent FERC filing for a voluntary bring‑your‑own‑generation construct for large loads that includes an expedited interconnection track targeted for implementation by August.
  • The PJM board directed staff to develop rules for a reliability backstop procurement, with the grid operator saying it will provide informational details to FERC by Feb. 27.
  • FERC approved new parameters that influence PJM capacity prices, rejecting objections from Monitoring Analytics, which warned the changes could allow a maximum price of about $526/MW‑day versus the $390/MW‑day cap it preferred.
  • The White House’s National Energy Dominance Council and PJM‑state governors urged an emergency Reliability Backstop Auction with 15‑year commitments and pressed to extend PJM’s price collar to additional delivery years.
  • Analysts cautioned that expedited procurements will not resolve interconnection and transmission bottlenecks or cost‑allocation disputes, and they said any reforms are unlikely to materially lower prices before late 2026.