“The Market Monitor requests that the Commission rule that PJM has the authority to add large new data center loads only when they can be served reliably as defined both by transmission and capacity adequacy.
“Such a ruling is necessary if PJM and its stakeholders are to develop reasonable rules to address the rapid addition of large new data center loads.
“PJM’s failure to clarify and enforce its existing rules and to protect reliable and affordable service in PJM is unjust and unreasonable.”
The filing says the latest PJM capacity market for 2026-27 was short of meeting its reliability objective and PJM was also short of its target as of June 1, 2025 by about 200 MW.
“Data center load growth is the primary reason for recent and expected capacity market conditions, including total forecast load growth, the tight supply and demand balance, and high prices.”
The Monitor said existing ratepayers in PJM have already paid $16.6 billion in increased electricity prices for the 2026-27 capacity auction due to existing and forecast data center demand.
“This total will continue to grow until the issues associated with the additions of large data center loads are addressed.
“The impact will increase significantly in the 2028/2029 BRA [capacity auction] currently scheduled for June 2026, when the maximum and minimum prices defined by the Agreement are no longer effective.”
[Note: The PJM Market Monitor provided this same analysis in testimony before the PA House Energy Committee on October 22. Read more here.
[The Market Monitor recommended adopting a policy of requiring data centers to bring their own generation to prevent “wealth transfers” and large price increases for other ratepayers.]
“At present there is no explicit agreement on the fundamental premise of the CIFP discussions in PJM about the addition of large new data center loads,” the PJM Market Monitor said in the FERC filing.
“The solutions offered by PJM and most stakeholders simply assume that PJM must agree to add large loads to the system when the loads cannot be served reliably because PJM does not have the required capacity resources.
“From another perspective, the position of PJM and market participants assumes that PJM does not have the authority to require that large new data center loads can be served reliably before those loads are added to the system.
“Despite the fact that the premise is assumed in their proposals, PJM and market participants fail to explicitly state the premise, to discuss the premise or to provide any support for the premise.
“The Market Monitor believes that this premise is false.
“The Market Monitor believes that under current rules, PJM does have the authority to require that the loads can be served reliably before allowing the loads to be added to the system.
“As part of its obligation to maintain reliability, PJM has the authority to require large new data center loads to wait to be added to the system until the loads can be served reliably, meaning that there is adequate generation to serve it and adequate transmission to serve it. PJM has the authority to create a load queue.
“The logic is simple. The question is clear.
“ If PJM has an obligation to provide reliable service to all PJM loads, is it just and reasonable for PJM to add new loads that it cannot serve reliably?
“The answer to that question is no.”
“PJM and market participants clearly recognize that the high level of new data center loads cannot now be served reliably.
“PJM’s Non Capacity Backed Load (“NCBL”) proposal made it clear that such loads would be subject to mandatory curtailments because there is not enough capacity to serve them.
“Most of the other CIFP proposals include provisions for curtailments of the new loads for the same reasons.
“None of the proposals have addressed the fact that PJM does not have the authority or the capability to order or enforce curtailments.
“Under all these proposals, PJM will be in the position of recommending the allocation of load curtailments rather than ensuring reliable service for all customers.”
The complaint concludes by saying--
-- PJM has the authority to address the impacts of large data center loads;
-- PJM should be directed to use its authority to engage in system planning to ensure reasonable, non-discriminatory prices for its existing and new customers, noting PJM is not required to add large new data center loads when those loads cannot be reliably served;
-- FERC should make a formal finding PJM has the “authority to add large new data center loads only when they can be served reliably as defined both by transmission and capacity adequacy and directing PJM to file tariff language stating this explicitly.”
Click Here for a copy of the Monitor’s complaint to FERC.
NewsClips:
-- Utility Dive: PJM Market Monitor: No More PJM Data Centers Unless They Can Be Reliably Served
-- Utility Dive: US EIA: Residential Electricity Prices Continue Rise, Up 7.4% In September; Natural Gas Up 47.4%; No One Sees A Near-Term Solution
Resource Links - Energy Affordability/Reliability:
-- Data Center Stampede Trampling PA Ratepayers Part III: PJM Market Monitor - Data Centers Have Cost Existing Ratepayers $16.6 Billion Already; Centers Should Bring Their Own Power Generation To Prevent More Large Price Spikes [PaEN]
-- Data Center Stampede Trampling PA Ratepayers Part I: PA Utility Law Project - Utility Terminations Up 30% Already; Prioritize Existing Loads; Centers Need To Help Pay For Utility Assistance [PaEN]
-- Data Center Stampede Trampling PA Ratepayers Part II: PA Consumer Advocate - PUC Should Set Conditions For Centers To Be Served By The Grid; Set Power Curtailment Priorities [PaEN]
-- PJM Electric Auction Impacts: 1 In 5 PA Households Report Problems Now Paying Energy Bills; Electric Utility Shutoffs Up 38.1% So Far This Year [PaEN]
-- PJM Electricity Auction: PJM Lost 2.8 Gigawatts Of Power Due To Reduced Reliability Rating Of Natural Gas Power Plants; Could Gain 12.2 Gigawatts By Increasing Reliability From Less Than 75% Now To An Achievable 90% [PaEN]
Related Articles This Week:
-- PUC: Most PA Electric Utility Consumers To See 3.7% To 10.6% Increase In Electricity Prices During The Next 3 Months Starting Dec. 1 [PaEN]
-- PUC Chairman Highlights 'Extraordinary Challenges' Pennsylvania Families Are Facing This Winter With Energy Bills And His Appreciation For Groups Providing Assistance [PaEN]
-- PUC Invites Comments On Model Tariff For Connecting A.I. Data Center To The Grid
-- PUC Commissioners Agree On Need To ‘Get It Right’ On Reforming Grid Connection Process For Solar, Renewable, All Energy Sources To Protect Consumers, Grid Reliability [PaEN]
-- Better Path Coalition Hosts Dec. 3 Online Brown Bag Briefing On A.I. Data Centers vs. Communities [PaEN]
NewsClips:
-- Post-Gazette - Anya Litvak: Electricity Costs Set To Rise In Most Of PA Next Month Due To A.I. Data Center Demands, Backlog Of New Generation Sources [Duquesne Light: Customers Facing ‘Astronomically Higher Bills’]
-- Morning Call: PA Electricity Rising Dec. 1: PPL, Met-Ed, PECO Customers Will See Higher Bills
-- PennLive: PPL, FirstEnergy Raising Electricity Rates Dec. 1; PPL Seeking Additional 7% Increase; A Real Concern For Many
-- TribLive: Duquesne Light Electric Rates Climb 10.6% Starting Dec. 1, As Statewide Electric Price Hikes Being
-- WHYY: Philadelphia Gas Works Residential Customers To See Monthly Bills Jump By About $6
-- PA Capital-Star: PJM Grid Operator Weighs Proposals To Manage A.I. Data Center Impact On Electricity Affordability And Reliability
-- Utility Dive: US DOE A.I. Data Center Load Connection Proposal Sparks Federal-State Jurisdiction Concerns, Data Centers Offer Qualified Support
[Posted: November 26, 2025] PA Environment Digest
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