PA Environment Digest Blog: PJM Announces Fast-Track Stakeholder Process To Seek Solutions For Connecting Large-Load A.I. Data Centers To The Electric Grid; Aug. 18 Workshop

On August 12, the PJM Interconnection Board of Managers announced it is implementing an expedited stakeholder process to seek solutions to resource adequacy challenges posed by rapidly interconnecting data centers and other large loads.

The Board announced in an Aug. 8 letter (PDF) that it would invoke the Critical Issue Fast Path (CIFP), an accelerated decision-making method available to the Board and PJM stakeholders, to advance matters more expeditiously through the stakeholder process.

A recent survey of PJM members and stakeholders reflected growing consensus that the resource adequacy issue should be one of PJM’s highest priorities.

“The Board agrees,” PJM Board of Managers Chair David E. Mills wrote.

“The economic growth that we are seeing in our footprint is exciting, and at the same time we need to make sure that we can preserve system reliability for the average consumer as this demand is added to the system,” said Manu Asthana, PJM President & CEO.

Stakeholder consensus reached through the CIFP would inform a Board decision on a potential filing with the Federal Energy Regulatory Commission targeted for December.

The Board’s primary focus builds on concepts introduced at a May workshop on large load additions.

The letter identified the scope of the initiative as including:

-- Resource Adequacy: The Board desires development of reliability-focused solutions to ensure large loads can continue to be integrated rapidly and reliably, without causing resource inadequacy. Solutions could be transitional, permanent or a combination.

-- Reliability Criteria: Criteria should be established for when a reliability-focused solution would be triggered and when it would no longer be necessary because there was sufficient supply to meet demand.

-- Interconnection Rules: Stakeholders are encouraged to consider further changes to interconnection rules targeting resource adequacy challenges.

-- Coordination: The Board believes proper coordination among PJM, parties who establish agreements with large loads, PJM states, and impacted customers must be considered.

-- Timing: Any solution should be effective in time to be implemented in the capacity auction for the 2028/2029 Delivery Year, currently scheduled for June 2026.

Aug. 18 Workshop

Before starting the formal CIFP process, PJM will hold a workshop Aug. 18 as a forum to receive feedback on the Board’s proposed scope and to present its initial proposal.

Click Here for the agenda.

A second workshop is scheduled for September 2.

Visit PJM’s Critical Issue Fast Path - Large Load Additions webpage for more information.

Projected Load Increase

The letter notes that PJM’s 2025 Long-Term Load Forecast (PDF) predicts a peak load growth of 32 GW from 2024 to 2030, with about 30 GW of that coming from data centers.

“The onrush of demand has created significant upward pricing pressure and has raised future resource adequacy concerns,” the letter says.

In the latest capacity auction for Delivery Year 2026/2027 (PDF), PJM committed nearly 100% of the supply offered to meet the projected needs of customers.

The updated load forecast reflects even tighter conditions.

These tight conditions exist as PJM advances toward completion of its federally approved 2022 interconnection process reform.

Through that reform effort, PJM has processed over 140,000 MW (PDF) of queued generation projects. The remaining interconnection transition queue is expected to be completely cleared over the next 18 months.

PJM’s Reliability Resource Initiative (PDF) will result in processing 11,000 MW of additional generation within the next 18 months, and PJM expects to see additional generation added to the system through its reform efforts, including expansion of surplus interconnection service to utilize the unused portion of interconnection service for facilities that do not operate continuously (such as adding battery storage to a solar generator).

A total of 46,000 MW of new generation has signed interconnection agreements and are ready to construct.

However, many of the projects are being hampered by factors outside of PJM’s control, such as siting and permitting challenges, supply chain backlogs, and financial dynamics.

Click Here for the PJM announcement.

(Chart: Patrick Cicero, Former PA Consumer Advocate and Counsel to the Pennsylvania Utility Law Project. Read more here.)

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