PJM said it modified three elements of the original filing: the method for determining the cost allocation for Reliability Backstop charges, LSE credit requirements and LSE exit responsibilities.
An LSE is a regulated entity that buys or manages electrical energy supply for end-use customers.
The process is intended to fill the approximately 6,800 MW generating capacity shortfall, which will be recalculated with updated information given the new RBP timeline, from PJM’s 2028/2029 Base Residual Auction and to allocate the costs for that new capacity to the Large Loads that are driving them.
The RBP still aims to secure resources for up to 15 years with a maximum willingness to pay equal to a MW-weighted average of $555/MW-day.
[Note: The current cap on PJM auction prices is $325/MW-day. Read more here.]
The shortfall in the last two capacity auctions conducted by PJM is driven by the rapid increase in electricity demand from Large Loads, which is outpacing the addition of new power supply.
The proposal includes two parallel paths: the RBP proposal and the ongoing facilitation of private bilateral contracts between Large Loads and capacity suppliers.
New Procurement Dates
The updated PJM proposal sets the timeline for the RBP procurement to launch March 1. Electric Distributors, the regulated entities that own the electric distribution system, will report new Large Load quantities prior to the March bid window opening.
The bid window would close March 28, with the final procurement target and supply amounts determined on April 28, followed by posting of results on May 10.
Cost Allocation
PJM now proposes that cost allocation to load serving entities will be based on Large Load growth between the actual summer peak load in 2026 and the forecast for the 2028/2029 Delivery Year.
For this time period, electric distribution companies will be required to provide PJM firm Large Load growth, and this will be assigned to each zone based on the zone’s contribution to load growth.
Click Here for a summary of the proposal.
Click Here for the PJM announcement and many more details.
The PJM Interconnection coordinates the wholesale electricity grid and markets for all or parts of 13 states—Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia—plus the District of Columbia.
Related Articles This Week:
-- Consumer Alert! If You Shopped For Your Electric, Natural Gas Supplier In 2024, You Paid $350 Million Too Much For Energy [PaEN]
-- PJM Interconnection Files Revised Reliability Backstop Generation Procurement Proposal With FERC; Looks To Hold Next Auction March 2027 With Price Cap Of $555/MW-Day [PaEN]
-- FracTracker Alliance: A.I. Data Center Developers Propose 12.5 GW Of Natural Gas-Fired Power Plants To Feed 12 Data Center Projects In Southwest PA [PaEN]
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-- PA Dept. Of Human Services: Apply For Low Income Home Energy Assistance (LIHEAP) Starting Nov. 2
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[Posted: October 29, 2026] PA Environment Digest
