Federal Energy Regulatory Commission Orders PJM To Allow A.I. Data Centers To Connect Directly To Power Plants, Expedite Connections For Shovel-Ready Projects, Enhance Load Forecasting

On December 18, the Federal Energy Regulatory Commission directed the PJM Interconnection to establish transparent rules to facilitate service of AI-driven data centers and other large loads co-located with generating facilities.  

These rules will safeguard grid reliability and protect consumers in the mid-Atlantic territory, which serves over 67 million Americans in 13 states and D.C. 

As technology leaps forward, clear and fair regulations must keep pace to support advancement, help prevent price volatility, and promote competition, ultimately benefiting consumers by keeping electricity costs manageable, FERC said.

“Today’s order is a monumental step towards fortifying America’s national and economic security in the AI revolution, while ensuring we preserve just and reasonable rates for all Americans.  I look forward to tackling more of these critical national issues with my colleagues in the New Year,” said Chairman Laura Swett.

Locking Up Power Plants

Thursday’s order grew out of a dispute between power plant owners and electric utilities over a proposed colocation deal between Amazon’s cloud-computing subsidiary and the owner of the Talen Susquehanna nuclear power plant in Pennsylvania, according to the Associated Press.

Utilities argued colocation allows big power users to avoid paying them to maintain the grid.

Some consumer advocates maintained that diverting energy from existing power plants to data centers could drive up energy prices without an answer for how rising power demand will be met for regular ratepayers.

In addition to the Talen Susquehanna nuclear power plant, energy companies have been buying or locking up existing power plants to serve A.I. data centers, including--

-- NRG bought five PA gas power plants with 2.4 Gigawatt capacity to help power data centers. Read more here.

-- Vistra Corp bought two PA gas power plants with 1.4 GigaWatt capacity to help power data centers.  Read more here.

-- Capital Power announced $3 billion over 10 years to upgrade and expand a gas facility in Shamokin Dam, PA.  Read more here.

-- The Tenaska Natural Gas Power Plant in Westmoreland County is also positioned to supply energy to data centers.  Read more here.

-- Bitfarms Ltd is buying Stronghold Digital Mining and Scrubgrass and Panther Creek coal waste power plants to help power data centers.  Read more here.

-- Google announced a 20-year agreement to repower the Safe Harbor and Holtwood hydroelectric facilities  on the Susquehanna River to feed data centers.  Read more here.

The Order

In the order, the Commission finds PJM’s tariff unjust and unreasonable due to a lack of clarity and consistency in the rates, terms, and conditions that apply to interconnection customers serving co-located load and eligible customers taking transmission service on behalf of co-located loads.

PJM’s tariff is unreasonable because it does not account for transmission services where eligible customers can manage energy withdrawals for co-located load.  

FERC directs PJM to revise its tariff to require its eligible (transmission) customers serving co-located load to choose from several transmission service options.

“Clarifying new rules will help release the bottleneck of large load investments across the PJM footprint,” said Chairman Swett.

FERC also directs PJM to report, by January 19, 2026, on the status of its proposals to speed up the addition of generating capacity, including--

-- Expedited interconnection process for shovel-ready projects,

-- Changes to PJM’s reliability backstop mechanism for resource shortfalls, and

-- Enhanced load forecasting and demand flexibility measures to identify new capacity needed for system reliability.

Click Here for a fact sheet on the decision.

Click Here for the FERC announcement.

NewsClip:

-- AP: FERC Orders PJM To Allow A.I. Data Centers To Plug Right Into Power Plants In Scramble For Energy

Related Articles This Week:

-- PJM Electricity Auction Prices Again At Cap Imposed By Gov. Shapiro’s Lawsuit Settlement, Without It Prices Would Be 59% Higher Driven By A.I. Data Center Demand; Grid Reliability Now Questioned  [PaEN] 

-- PUC Votes To Develop Rulemaking To Modernize Electric Interconnection Regulations; Proposed Rule Due In March  [PaEN] 

-- Environmental Groups Appeal Air Quality Permit For Homer City A.I. Data Center 4.5 GW Natural Gas Power Plant In Indiana County  [PaEN] 

-- Pennsylvania BRIGHT Expands Statewide To Remove Barriers To Bringing Affordable Solar Energy To PA Homeowners Left Out Of Transition To Clean Energy Options  [PaEN] 

-- Philadelphia Solar Energy Association: New Solar Schools Toolkit, Solar Toolkit For Nonprofits, Local Governments Available To Help Deal With Soaring Electricity Costs  [PaEN] 

-- PUC Approves $50,000 Penalty Settlement With Peoples Natural Gas Following 2022 Johnstown Pipeline Damage, Fire Incident

-- PUC Approves Settlement With Kaib & Kaib LLC Over Alleged Overbilling Of Natural Gas Customers In Jefferson County; $4,066.16 In Refunds Due, $500 Penalty

-- PUC Chairman Steve DeFrank Recognizes Staff And 2025 Accomplishments

NewsClips:

-- Utility Dive: PJM Capacity Prices Hit Record High As Grid Operator Falls Short Of Reliability Target; 6.6 GW Shortfall Could Trigger Reliability Backstop Auction 

-- Bloomberg: Pressure Mounts To Fix PJM Grid As Electricity Costs Hit New Highs

-- Reuters: Prices In PJM Power Auction Hit New Record, Signaling Higher Utility Bills Ahead 

-- Bloomberg: Latest PJM Power Auction Set To Deepen Affordability Concerns

-- KSDK: A.I. Data Centers Are Sucking Illinois’ Power Grid Dry, Official Report Warns [PJM Service Area]

-- Utility Dive: Electric Utility Large Load Tariffs Could Streamline Interconnection By Shrinking Queues, Report [Now, Anyone With An Acre Of Land For A Data Center Is Putting In An Interconnection Request] 

-- PJM Outlines Long-Term Electric Transmission Plan In FERC Filing 

-- KDKA: PA Lawmakers Exploring How To Regulate A.I. Data Centers, Which Drive Up Resident’s Utility Bills

-- TribLive: Westmoreland County Housing Authority Plans To Lease Former State Prison Site, Warehouse Rooftop For Solar Energy Facilities [‘There’s Only One Direction (Electric Prices) Are Going - That’s Up’] 

-- Tribune-Democrat Guest Essay: Pennsylvania Must Be Prepared To Meet Energy Challenges After RGGI - By Tom Gilbert, PA Environmental Council  [PDF of Article]

-- TribLive Guest Essay: New Energy Sources Needed Now To Combat Soaring Electricity Prices - By Kate Harper & Conor Lamb, Energy Future PA

-- Morning Call/Inquirer: Poll: How Pennsylvanians Feel About A.I. Data Centers: 70% Concerned About Water Use; 71% Concerned About Electricity Use 

-- Post-Gazette: Survey Says Pennsylvanians See The A.I. Revolution As A ‘Significant Threat To Humanity’ 

-- Post-Gazette - Laura Legere: US Energy Secretary Touts $1 Billion Taxpayer Loan To Restart Undamaged Three Mile Island Nuclear Reactor To Feed Microsoft A.I. Data Centers 

-- Altoona Mirror: Groups Urge Shapiro To Dial Back Support For A.I. Data Centers [PDF of Article]

-- Bloomberg: New York Utility Says Queue For A.I. Data Center Power Users Has Tripled

-- Pottstown Mercury: Sen. Pennycuick, Rep. Ciresi Say State Efforts Will Continue To Regulate A.I. Despite President’s Executive Order

-- Post-Gazette: President’s Order To Block State Regulation Of A.I. An ‘Abuse Of Power,’ State Democratic Sen. Costa Says

-- WITF: Republican Attorney General Dave Sunday Says He’ll Defend State A.I. Laws From President’s Administration

-- PA Capital-Star: PA’s Republican Attorney General, Lawmakers Contend With President’s Order Blocking A.I. Regulations

-- Chesapeake Bay Journal: Maryland Legislature Overrides Governor’s Veto Of Bills To Study Costs Of Greenhouse Gas Emissions In MD; Economic, Energy, Environmental Impacts Of A.I. Data Centers, Setting Up State Energy Office 

[Posted: December 19, 2025]  PA Environment Digest

The Power Of Master Watershed Stewards - Program Accomplishments In 2025; Sign Up For Spring Training Now; More Extension Resources

The Penn State Extension Master Watershed Steward Program specializes in volunteer management, adding services for environmental restoration, education, and outreach in the community. 

The program recruits, trains, and engages knowledgeable volunteers who can work with Conservation Districts, local governments, and other organizations, supporting and enhancing their missions. 

The volunteers can:

-- Help local governments implement stormwater permit requirements

-- Coordinate and run litter clean-ups

-- Organize educational workshops

-- Set up educational booths at community events

-- Install and maintain best management practices and more!

1,080 Stewards, 55 Counties And Counting

In 2025, the Penn State Extension Master Watershed Steward Program grew to 1,080 dedicated community volunteers in 55 counties who logged 51,871 volunteer hours across the state. 

Since the program began in 2013, the total volunteer hours are 255,951, valued at $8.9 million. 

In their collective efforts this past year, working with local conservation organizations, the Master Watershed Stewards--

-- Made over 142,465 personal contacts with Pennsylvania residents and shared information on protecting our water resources

-- Reached 254 MS4 Stormwater Management communities with qualifying stormwater education and outreach

-- Organized 295 workshops and educational presentations for their communities

-- Set up educational displays and engaged with residents at 308 community events

-- Taught students about the environment in 141 schools

-- 242 Master Watershed Stewards used their knowledge to support municipal boards and community watershed groups

-- Planted 32,267 trees and 9,547 herbaceous perennials

-- Distributed 707 rain barrels

-- Conducted water quality monitoring on 352 sites along 201 streams

-- Protected 352.5 acres of habitat and 12.8 miles of streams

-- Removed 152 acres of invasive species

-- Removed 6,780 55-gallon bags of trash

Thank you to the Master Watershed Stewards for all the good they've done in 2025! 

Spring Training Signups 

If you would like to become a Master Watershed Steward, classes are forming for 2026.  

Click Here to sign up and for more information.

Support Their Work

If you would like to support our work with a year-end donation, you can help us to:

-- Train new watershed stewards across Pennsylvania

-- Provide tools and materials for restoration projects

-- Support community education and outreach

-- Strengthen the long-term health of local ecosystems

When you give to this program, you're investing in cleaner streams, healthier habitats, and more resilient communities—not just for today, but for generations to come.

Click Here for the announcement.

Visit the Penn State Extension Master Watershed Steward Program webpage to learn more.

Visit the Penn State Extension website to learn more about many other education opportunities.

Upcoming Extension Events:

-- Launch Your Ag Conservation Journey At The PA Farm Show - Jan. 10-17

-- Penn State Extension Jan. 12 In-Person Program On Road Salt Usage Trends And Environmental Impacts, Adams County Ag & Natural Resources Center, Gettysburg, 7:00 to 8:15 p.m.

-- Penn State Extension Hosts Jan. 27 Community Forestry Webinar - Forester's Featured Working Tree Solutions  [PaEN] 

-- Penn State Extension Jan. 28 Water Cooler Talk Webinar- Soil Health Practices For Clean Water, Noon to 1:00 p.m.

-- Penn State Extension Feb. 3 Webinar - Exploring Nature Through Journaling, Noon to 1:30 p.m.

-- Penn State Extension Feb. 13 Webinar On Making Cover Crops Pay - How Regenified Certification Works  [PaEN] 

-- Penn State Extension: Making Cover Crops Pay: Feb. 20 Webinar On Understanding What Each Cover Crop Contributes To Soil Health  [PaEN] 

-- Penn State Extension In-Person Southeast PA Green Industry Conference March 5 In Montgomery County  [PaEN] 

-- Penn State Extension March 16 Webinar On Elm Zigzag Sawfly Update - Frontiers Of Forest Health  [PaEN] 

-- Conservation Pros: Join In Ag Literacy Week - March 16-20

Related Extension Articles:

-- Tips On Watershed-Friendly Deicing

-- Youth Water Education Resources

-- Do’s And Don’ts Of Winter Manure Spreading

-- Funding For Sustainable Farming

-- Improve Stormwater Quality With Low-Impact Development Practices

-- Abandoned PA Oil And Gas Wells Leak Methane, Metals Into Groundwater

-- Penn State Extension Ag Conservation News: Funding For Sustainable Farming; Launch Your Ag Conservation Journey At The PA Farm Show

(Reprinted from the latest Penn State Extension Watershed Winds newsletter.  Click Here to sign up for your own copy (bottom of the page).)

Related Articles This Week:

-- USDA Natural Resources Conservation Service Announces Jan. 15 Deadline To Apply For Major Conservation Assistance Program, Including Regenerative Pilot Program  [PaEN] 

-- Fish & Boat Commission Grant Funding Available To Improve Watersheds In York, Lancaster Counties  [PaEN]

-- Westminster College Honors Student Research And Creative Works At 18th Student Symposium On The Environment  [PaEN]

-- Unionville H.S. Rowing Club Finds New Home With Chester Water Authority On The Octoraro Reservoir; Student Service Projects Help Protect Reservoir  [PaEN]

-- Kensington Teens Win $17,000 Grant To Turn Trash-Filled, Empty Lot Into Public Garden To Prevent Dumping In Philadelphia  [PaEN]

NewsClips:

-- Middle Susquehanna RiverKeeper Blog: PA River Of The Year Finalist Chillisquaque Creek Offers Microcosm Of Issues And Opportunities For Bigger Susquehanna River System

-- The Allegheny Front: EPA Hears Competing Views On New Proposed Rollbacks For Federal Wetlands, Water Protections

-- WHYY: Road Sale Remains In PA, NJ, DE Waterways Months After Winter Storms, According To New Stroud Water Research Center Data

-- Middle Susquehanna RiverKeeper Blog: 2026 Middle Susquehanna Naturalist Calendar Now Available For Order

-- Chesapeake Bay Journal: Maryland Legislature Overrides Governor’s Veto Of Bills To Study Costs Of Greenhouse Gas Emissions In MD; Economic, Energy, Environmental Impacts Of A.I. Data Centers, Setting Up State Energy Office 

[Posted: December 18, 2025]  PA Environment Digest