The 2025 Long-Term Load Forecast set the stage for the year’s focus on planning for an unprecedented increase in electricity demand, driven primarily by the proliferation of data centers in the PJM footprint, while maintaining an adequate power supply.
Released in January, the forecast (PDF) indicated that PJM’s summer peak usage will climb by about 70 GW, to 220 GW, over the next 15 years. For context, the record summer peak for the PJM footprint was 165 GW in 2006.
Later in the year, PJM’s evaluation of large load adjustment requests (PDF), a key variable in the annual long-term load forecasts, confirmed that electricity demand from data center growth is projected to grow up to ~30 GW between 2025 and 2030.
It is critical for PJM to get the most accurate information about data centers and other new large loads in order to avoid double-counting in its forecasts, which are used both for procuring enough resources in the capacity market and for planning transmission for the regional grid.
In 2025, PJM continued to improve its forecasting methods, including implementing a new standardized process (PDF) for Load Serving Entities to submit their requests for adjustments, with an eye toward gathering information to measure the likelihood that the new load will materialize and when.
Transmission Improvements
PJM plans for transmission enhancements and expansions so electricity can reach 67 million customers whenever and wherever they need it.
In February, the Board of Managers approved projects recommended to solve reliability needs identified in Window 1 of the 2024 Regional Transmission Expansion Plan (RTEP).
These projects address accelerated load growth in various areas of the PJM region, changes in the mix of generation resources and the resulting shifts to regional power flows.
The collection of solutions is expected to require an investment of approximately $6 billion.
In February 2026, PJM staff will recommend the approval of another collection of projects to solve needs identified in the 2025 RTEP Window 1.
These projects address separate needs in the eastern, southern and western areas of the PJM footprint.
Those needs are driven by accelerated load growth in multiple regions, the addition of new generation in southern Virginia, the current delays and potential removal of New Jersey offshore wind projects, and increased regional flows toward the eastern portions of PJM’s footprint.
New Long-Term Planning Process
Going beyond the traditional RTEP process, PJM in December 2025 outlined a new long-term transmission planning process in compliance with FERC’s Order 1920.
PJM’s proposed long-term planning process (PDF) will achieve the Final Rule’s goal to transition transmission planning processes toward a more proactive, long-term planning approach.
Consistent with Order 1920, PJM’s proposed long-term planning approach relies on extensive collaboration with the PJM Region’s Relevant State Entities, including during the development of the assumptions and scenarios that will be used to identify long-term transmission needs and potential transmission solutions.
Critical Issue Fast Path
Beginning in August, PJM and stakeholders tackled the subject of how best to integrate large load head-on with the Board’s initiation of the Critical Issue Fast Path for Large Load Additions.
The goal of this expedited stakeholder process was to develop reliability-focused solutions to ensure large load additions can continue to be integrated rapidly and reliably without causing resource inadequacy, and while recognizing jurisdictional boundaries and data center relationships with their contracted electricity companies.
After three months of meetings, participants produced 12 proposals, including one from PJM.
None received a supermajority of support in an advisory vote by the Members Committee, so the Board proceeded to study all of the recommendations and craft a new plan to submit to the Federal Energy Regulatory Commission. That filing is expected to be made in January.
Interconnection Process Reform
Serving new demand requires getting more generation connected to the grid.
In 2025, PJM continued to mark steady progress (PDF) in the implementation of its new interconnection process.
PJM has processed more than 170,000 MW of new generation requests since 2023, with 30,000 MW of generation projections left in the interconnection transition queue to be processed in 2026.
PJM’s new Cycle process opens in April, with a one- to two-year timeline for reviews, depending on the impact to the system.
Approximately 57 GW of projects have completed PJM’s study process and have either signed or been offered generation interconnection agreements.
Those projects are free to proceed to construction. Many of these projects, however, continue to be slowed or stopped by factors unrelated to PJM.
In 2025, PJM saw the interconnection of approximately 3,045 MW of new generation from solar (2,761 MW), wind (255 MW) and coal (29 MW) resources.
New Tools Streamline the Process
Each project requires extensive study by PJM staff, which is why the new interconnection process includes milestones and deposits to encourage the most viable submissions.
To help streamline the process further, PJM in April announced a multiyear collaboration with Google and Tapestry to deploy AI-enhanced tools in PJM’s planning process for connecting new generation resources.
This joint effort has the goal of significantly cutting processing times for reviewing new interconnection applications, allowing large volumes of requests to be processed quickly and accurately.
Additional automation in the interconnection process, along with increased staffing over the past several years, has improved quality while significantly reducing the backlog.
New Ways To Get Resources Connected
Stakeholders and PJM were also busy throughout the year thinking of how to complement the traditional interconnection process with new ways to get megawatts onto the grid.
Among them, FERC approved two PJM proposals to help boost the supply of electricity:
-- The Reliability Resource Initiative (RRI) was designed to get shovel-ready, high-reliability projects connected faster by adding them to the final transition cycle (Transition Cycle 2) of PJM’s reformed interconnection process, rather than waiting for the new cycle interconnection process to be fully implemented.
-- The second initiative aims to streamline the use of Surplus Interconnection Service (SIS), or the unused portion of interconnection service for a facility that cannot or does not operate continuously, every hour of every day year-round. An example of a pairing using SIS is a renewable resource combined with battery storage.
Several other stakeholder suggestions for interconnection reform – such as looking to partially utilize generation that can be in service prior to the completion of required network upgrades, and consideration of alternative generation and transmission to Reliability Must-Run (RMR) arrangements – are either in place or being discussed in the stakeholder process.
For example, PJM is enhancing its interim deliverability rules to allow projects to operate as energy-only resources earlier in the queue process.
Another proposal to make it easier to transfer Capacity Interconnection Rights from a deactivation resource to replacement generation is pending before FERC.
Distribution Connection Rules Simplified
FERC also approved PJM’s proposal to simplify the rules for connecting generation at the distribution level.
FERC’s order authorizes PJM to eliminate the application of the “first use” legal test the Commission created in 2003, which requires certain distribution-level interconnections to be processed under federal, rather than state and local, interconnection rules.
The new reforms will take effect April 28, 2026, after which all resources in the PJM region connecting to distribution facilities will do so under state and local rules and agreements, rather than the federal rules and agreements of the PJM Tariff.
The move will enable PJM staff to reallocate time and resources to their work on transmission-level interconnections and provide greater clarity to project developers earlier in the interconnection process.
Additionally, these reforms affirm the important role of PJM’s state and local regulatory authority partners in setting the rules that govern the physical interconnection of resources to the distribution facilities that they regulate.
FERC Order on Colocation
The end of the year brought an order from FERC on colocation that had been in the works since February 2025.
The order required PJM to include consideration of proper provisions for service that applies to interconnection customers serving colocated load or eligible customers taking transmission service on behalf of colocated load.
It directed PJM to submit compliance filings, established a paper hearing and directed PJM to file an informational report on the status of proposals submitted under the Critical Issue Fast Path process on large load additions.
Notably, the order directed PJM to create three new transmission services for colocated load willing and able to limit their energy withdrawals under certain conditions:
-- New interim, non-firm transmission service
-- Firm contract demand transmission service
-- Non-firm contract demand transmission service
The first of the reports is due in 30 days, by Jan. 20.
Click Here for the PJM article.
Visit the PJM Interconnection website for more information.
Previous Articles:
-- PJM Interconnection: 2025 Year In Review Part I - Operations Improvement See Regional Electric Grid Through Record Peaks, Growing Demand [PaEN]
-- PJM Interconnection: 2025 Year In Review Part II: PJM Revised Market Rules With Goal Of Supporting Efficiency, Increasing Generation Resources [PaEN]
-- PJM Interconnection: 2025 Year In Review Part III: Planning Prepares For Burgeoning A.I. Data Center Electricity Demand [PaEN]
Resource Links:
-- PUC Chairman Highlights 'Extraordinary Challenges' Pennsylvania Families Are Facing This Winter With Energy Bills And His Appreciation For Groups Providing Assistance [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]
-- 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]
-- 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]
-- PA Energy, Environmental, Citizen Advocates Call On PUC To Protect Ratepayers, Communities From Costs, Impacts Of A.I. Data Centers [PaEN]
-- Spotlight PA: Map Shows Growing Number Of A.I. Data Centers Planned Across Pennsylvania
-- Vistra Corp Buys 2 More PA Natural Gas Power Plants; Facebook/Meta Buys 20 Years Of Power From Beaver Valley Nuclear Plant; 18 PA Power Plants Now Locked Up To Feed A.I. Data Centers [PaEN]
-- Sen. Boscola To Introduce 6-Bill Package To Protect Pennsylvania Communities And Ratepayers From Large-Scale A.I. Data Centers Rapidly Expanding Across The State [PaEN]
-- PA House Committee Approves Legislation Giving Local Officials Greater Say Over Regional-Scale Developments Like A.I. Data Centers, Warehouses [PaEN]
-- In Case You Missed It: A.I./Data Center Articles - NewClips From Last Week - January 12 [PaEN]
Resource Links - Who Pays:
-- PUC Invites Comments On Proposed Model Tariff To Balance A.I. Data Center Growth And Ratepayer Protection [PaEN]
-- PUC Votes To Develop Rulemaking To Modernize Electric Interconnection Regulations; Proposed Rule Due In March [PaEN]
-- PJM Market Monitor Files Complaint With FERC Saying PJM Is Proposing To Allow A.I. Data Centers To Connect To Grid That It Cannot Reliably Serve, Will Require Blackouts To Maintain Service [PaEN]
-- On The Eve Of New PJM Capacity Auction: Gov. Shapiro, 5 Other Governors Say PJM's Efforts To Deal With A.I. Data Center Demands Have Failed; Urge 'Decisive Action' To Avoid 'Extraordinarily’ High Prices [PaEN]
Resource Links - Grid Reliability:
-- North American Electric Reliability Corp: Electric Grid At Elevated Risk Of Insufficient Energy Supplies During Extreme Weather Due To Rising A.I. Data Center Demands, 'Precarious' Natural Gas Supplies [PaEN]
-- Utility Dive: North American Electric Reliability Corp: Winter Peak Demand Is Rising Faster Than Resource Additions
-- Reuters: US A.I. Data Center Demand Raising Power Risks This Winter, NERC Says
-- Bloomberg: US Faces Winter Blackout Risks From A.I. Data Centers’ Power Needs, NERC Says
-- WGEM: Illinois State Regulators Warn Of Impending Energy Shortfalls As PJM Capacity Prices Rise Again
-- KSDK: A.I. Data Centers Are Sucking Illinois’ Power Grid Dry, Official Report Warns [PJM Service Area]
Related Articles This Week:
-- PUC Urges Utility Customers To Reach Out Early For Heating Bill Payment Options, Assistance Programs, Read About Energy Saving Tips [PaEN]
-- Cameron County Chamber Of Commerce To Install Solar Energy Installation At The Artisan & Economic Innovation CenterTo Offset 100% Of Energy Consumption [PaEN]
-- Pennsylvania Solar Center: Jan. 23 Webinar On State Solar For Schools Grants & Free GET Solar Schools Technical Assistance [PaEN]
NewsClips:
-- Scranton Times - Chris Kelly Opinion: DEP Hearing Exposes Gravity Of The ‘Comically Speculative Nature’ Of A.I. Data Center Development [PDF of Article]
-- Capital & Main - Audrey Carleton: Will Homer City, An Old Pennsylvania Coal Town, Get A Reboot From 3,200 Acre A.I. Data Center Campus?
-- The Citizens Voice: Amazon Seeks To Discharge Used A.I. Data Center Water Into Susquehanna River In Luzerne County [PDF of Article]
-- Wall Street Journal: America’s Biggest Power Grid Operator [PJM] Has An A.I. Program - Too Many Data Centers Threaten To Max Out Generation Capacity, Rate Increases Anger Consumers [PDF of Article]
-- AP: Microsoft Pushes Big Tech To ‘Pay Our Way’ For A.I. Data Centers Amid Rising Opposition [PA Highlighted]
-- WPSU/The Allegheny Front: Facebook/Meta Reaches Agreement To Buy Electricity From Beaver Valley Nuclear Plant To Fuel A.I. Data Centers
-- Beaver Times: Beaver Valley Nuke Plant Will Help Power Facebook/Meta In Region; What To Know
-- Public News Service: Clean Energy Boom Adding Much-Needed Electric Generating Capacity To Grid In PA Threatened As Federal Funding Stalls
-- BBC: ‘I Had No Electricity For 6 Months:’ US Families Struggle With Soaring Energy Prices
-- Utility Dive: US Senate Bill Would Exempt Fully Isolated A.I. Data Centers, Other Large Loads From FERC, DOE Regulation
-- TribLive: Dina Powell McCormick, Wife Of PA US Sen. Dave McCormick, Named Meta [Facebook] President
-- AP: US Carbon Pollution Rose In 2025, Experts Blame Cold Weather, High Natural Gas Prices, Data Centers
[Posted: January 13, 2026] PA Environment Digest
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