As of September 29, 2026, PJM Interconnected delayed its planned reliability backstop procurement auction for data centers due to the Federal Energy Regulatory Commission’s (FERC) decision to only partly approve it. The agency stated that aspects of PJM’s proposal dealing with cost allocation, transmission owner exit rules, and load-serving entity collateral requirements may be unjust and unreasonable, offering potential solutions to those parts of the plan and encouraging PJM to propose fixes soon, avoiding the need for a hearing process. PJM’s proposal was filed at the last minute, leaving FERC no time to “rehabilitate the mess [they] received,” stated FERC Chairman Laura Swett. PJM is reviewing FERC’s order and intends to address the commission’s remaining concerns regarding its proposed backstop reliability procurement, which aims to acquire up to 6.8 GW of new capacity to address a projected shortfall for the 2028/29 delivery year, largely driven by data center demand growth. FERC found that PJM had not adequately justified its proposed cost-allocation method and recommended allocating procurement costs based on updated load forecasts to better reflect projected demand growth and ensure costs are assigned appropriately. PJM spokesperson Jeffrey Shields said that a new timeline for the backstop procurement has yet to be determined.
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