Governors Pitch Fast-Track PJM Rule for Data Centers That Add Matching Generation

Overview

• The joint proposal from four governors and the Data Center Coalition would allow accelerated grid connections only if data centers secure or develop generation equal to their expected load and add those megawatts to PJM at startup.
• The plan seeks to extend PJM’s current capacity price cap through the summer of 2029 to limit near-term bill increases for customers.
• States would expedite siting and permitting, with qualifying generation allowed on site or elsewhere within state-designated areas of the PJM region.
• PJM is considering the proposal alongside more than a dozen alternatives, including a staff option to move up to 10 projects per year through expedited reviews, before submitting a rule-change filing to FERC in December.
• Monitoring Analytics and outside researchers caution that the plan lacks clear interruption and reliability provisions and could steer development toward natural gas.