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FERC rejects PJM's plan to curtail new data centers first in grid emergencies, but approves a large-load registry
In a 9 October order, US regulators rejected PJM's proposal to let the grid operator cut power to new large loads such as data centers that do not bring their own supply, saying the choice belongs to states, while accepting a 50 MW definition and a registry.
Evidence: 4 sources · 1 official record · 3 independent reports · 3 open questions
What happened
- On 9 October, the Federal Energy Regulatory Commission (FERC) issued an order on PJM's large-load proposal in docket ER26-3515-000.
- FERC rejected the Interim Resource Adequacy Service, under which new large loads without matching new generation could have been curtailed first during grid stress.
- FERC accepted PJM's definition of a large load as 50 MW or more at one site, and a registry of such loads.
- FERC directed PJM to file within 30 days a compliance version limited to the definition and the registry. PJM may refile a modified plan.
Why it matters
PJM's grid covers the largest cluster of data centers in the world, and who gets curtailed, and who pays for new supply, will shape both electricity bills and how fast AI facilities can connect.
What is confirmed and what is claimed
Confirmed
- FERC rejected the Interim Resource Adequacy Service and accepted the large-load definition and registry (FERC commissioner's concurrence dated 9 October; also reported by Utility Dive, RTO Insider, and the American Public Power Association). 23
- FERC found that a regional tariff may not itself decide which retail customers are curtailed or how they are compensated, and that those decisions rest with states (as reported by the American Public Power Association and Troutman Pepper's energy report). 3
- PJM said it is reviewing the order (PJM spokesperson, as reported by trade press).
Claimed, not independently verified
- PJM has projected about 32 GW of load growth from 2024 to 2030, about 30 GW of it from data centers. This is PJM's forecast, not measured demand.
- PJM's independent market monitor said in a filing that about 4,017 MW of forecast data center load had been cancelled or delayed as of 21 September. The monitor had asked FERC to reject PJM's filing.
PJM Interconnection runs the grid for 13 states and Washington, DC, including northern Virginia, where more data center capacity is concentrated than anywhere else. Facing forecasts that data centers will drive most of its demand growth this decade, PJM proposed a new category of service: large new customers that did not bring their own new generation could connect sooner, but would be the first to be curtailed when supply ran short.
FERC, the federal regulator for wholesale power markets and transmission, turned that part down. According to the order as reported, a regional tariff cannot itself choose which retail customers lose power or set their compensation. Those are matters for states. FERC did accept two smaller pieces: a definition of a large load as 50 MW or more at a single site, and a registry that tracks each facility's location, ramp-up schedule, and power supply.
Context
The 50 MW threshold is a measure of capacity, the most power a site can draw at once, not its annual consumption. A registry matters because forecasts of data center demand have proved unreliable. PJM's market monitor, which opposed the filing, said in September that a large share of the data center load forecast for the next few delivery years had already been cancelled or delayed.
The underlying question is who pays for the new generation and transmission that large loads require, and who bears the risk if forecasts are wrong. See our explainer on AI energy use and our policy map.
What to watch
- PJM's 30-day compliance filing and any refiled curtailment proposal.
- State legislation or utility-commission rules on large-load tariffs in Virginia, Pennsylvania, Ohio, and elsewhere in PJM.
- PJM's next capacity auction results.
What we don’t know yet
- What a refiled PJM proposal would look like, and when it would be submitted.
- Whether states in the PJM region will adopt their own curtailment or cost-allocation rules for data centers.
- How the order will affect capacity prices, which some analysts expect to stay high.
Evidence and sources
- Regulatory record Commissioner Rosner's Concurrence in PJM Interconnection, L.L.C. (ER26-3515-000)
- Independent reporting FERC rejects most of PJM's large load interconnection plan
- Independent reporting FERC Accepts Elements of PJM Proposal Tied to Large Loads, Rejects Others
- Independent reporting PJM Market Monitor Says 42% Of Forecast Data Center Growth Is Delayed Or Canceled