FERC accepts PJM data-center capacity plan but suspends it until Feb. 28

September 30, 2026 at 02:04 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

The Federal Energy Regulatory Commission accepted PJM Interconnection's plan to accelerate new power supply for data centers but suspended it until Feb. 28. The regulator cited unresolved cost allocation, collateral, and exit-rule issues. Chairperson Laura Swett said the commission will not accept a flawed procurement mechanism with billion-dollar implications.

Key Facts

FERC accepted PJM's capacity procurement plan but suspended it until Feb. 28 and ordered a paper hearing on unresolved issues.
PJM plans a one-time auction to cover a 6.8-gigawatt shortfall driven by data center demand.
Chairperson Laura Swett said the commission will not accept a deeply flawed procurement mechanism with billion-dollar implications for consumers.
Monitoring Analytics, PJM's independent watchdog, said other consumers would bear costs if data centers fail.

Regulatory Decision

The Federal Energy Regulatory Commission accepted PJM Interconnection's plan to procure new capacity but suspended it until Feb. 28. The regulator established a paper hearing on unresolved issues and encouraged PJM to submit a new filing addressing its concerns. FERC agreed PJM needs more generation quickly and approved many parts of the plan, but said cost allocation, collateral, and exit-rule issues must be fixed. Chairperson Laura Swett stated the commission will not be forced into accepting a flawed 11th-hour procurement mechanism.

Capacity Shortfall

PJM plans to hold a one-time auction to cover a 6.8-gigawatt shortfall. An earlier auction this year failed to attract sufficient commitments to satisfy peak-day power demand. The artificial intelligence boom is driving the fastest growth in power demand in decades for PJM, home to the biggest US concentration of data centers. The Trump administration pushed for a one-time auction with 15-year contracts instead of annual contracts.

Stakeholder Pressure

State governors, utilities, and investors have criticized PJM's response to the AI boom. Monitoring Analytics, the grid's independent watchdog, said other consumers would bear costs in the event of data center failures. FERC has been pushing for reforms in recent months amid the demand growth.