[The new plan was released just hours after Gov. Josh Shapiro signed a Statement of Principles alongside a bipartisan group of governors, U.S. Secretary of Energy Chris Wright, and U.S. Secretary of the Interior Doug Burgum to advance a coordinated plan to reform PJM Interconnection, accelerate the construction of new energy generation, and protect families and businesses from rising electricity costs.
[A key part of the plan was a call for PJM to hold an emergency electricity capacity auction to address A.I. data center demand to “build big power plants again.” Read more here.]
The PJM Board’s announcement represents the culmination of an accelerated stakeholder process that produced 12 proposals.
The depth and quality of concepts advanced in that process informed the Board’s decision, which incorporates ideas drawn from multiple proposals.
The plan detailed by the Board (PDF) includes proposals to be filed directly with the Federal Energy Regulatory Commission; changes in PJM’s policies and procedures that can be made immediately; and proposed stakeholder processes to inform the Board on complex but equally urgent issues.
PJM said the Board’s course of action will address the need for new power generation that can come online quickly and is coupled with options for new load customers whose electricity demand can be curtailed in times of system need.
Both of these goals will also help address the supply-and-demand imbalance that has the potential to threaten grid reliability and is currently driving up wholesale costs that can impact consumer bills.
The Board proposes:
-- Significant load forecasting improvements and increased role for states
-- Avenues for new large loads to bring their own new generation or enter into a connect and manage framework subject to earlier curtailment
-- Creation of an accelerated interconnection track for state-sponsored generation projects
-- Immediate initiation of a backstop generation procurement process to address short-term reliability needs
-- A review of PJM markets to assess how they can best work in combination to support investment
“This decision is about how PJM integrates large new loads in a way that preserves reliability for customers while creating a predictable, transparent path for growth,” said David Mills, PJM Board Chair and Interim President and CEO. “This is not a yes/no to data centers. This is ‘How can we do this while keeping the lights on and recognizing the impact on consumers at the same time?’ We look forward to implementing, along with our stakeholders, these proposals to manage the phenomenal demand growth we are experiencing.”
Price Collar
The PJM Board will seek additional feedback from its stakeholders before deciding whether to extend the price floor and ceiling, also known as a “price collar,” that was in place for the last two auctions to the 28/29 and 29/30 auctions in light of the holistic market review it has asked the PJM Staff to perform in 2026.
The Board’s decision drew upon multiple proposals put forth by stakeholders during the Critical Issue Fast Path for Large Loads in the second half of 2025.
While stakeholders did not come to consensus on any of 12 proposals, the detailed analyses presented throughout the process helped the Board create a comprehensive package that reflects a broad array of solutions.
The Board, in its letter, describes the interim nature of some of the actions taken until the region’s supply/demand balance and reserve margins have been restored.
PJM will continue to engage stakeholders, regulators, and policymakers as implementation details are refined and as load growth continues to evolve.
“PJM is establishing clear, transparent guardrails for integrating large new loads under defined conditions,” said Stu Bresler, PJM Chief Operating Officer. “This proposed course of action will require intense work by all of us in 2026 and involve significant changes, but it’s clear that bold action will be required to support the positive growth that is happening throughout the PJM region and the nation.”
Click Here for the PJM announcement.
Reaction
Claire Lang-Ree, advocate for the Sustainable FERC Project at the Natural Resources Defense Council, issued this statement in reaction to the new PJM plan--
“In their plan, PJM recognized that data center-caused reliability risk is unacceptable and agreed to protect everyday families from blackouts if there’s not enough power to go around.
“This will triage the reliability crisis that PJM is hurtling toward, but it won’t reduce energy bills and solve deeper bottlenecks that are blocking new supply from coming online.
“However, PJM also proposed a fast-track process that effectively excludes clean energy projects and gives special treatment to fossil fuel power plants built for data centers, allowing them to cut ahead of low-cost clean resources that have been waiting years to connect to the grid.
“PJM and state leaders need to implement solutions that will actually stop skyrocketing energy bills and protect the public from the risk of blackouts driven by data centers.
“Critically, PJM must require large loads to pay for their own new power supply or risk getting turned off. PJM also needs to speed up connection of all new energy, not just those serving data centers.
“States must play a role by ensuring that PJM’s actions don’t come at the cost of their climate and clean energy goals. And data center developers should adhere to their own climate commitments by prioritizing fast-to-construct, reliable, clean resources like battery storage.
“The 67 million Americans in the PJM region cannot afford to wait.”
Related Articles This Week:
-- Gov. Shapiro Secures Federal Support To Extend PJM Electric Generation Auction Price Cap; Call For Emergency PJM Auction To ‘Build Big Power Plants Again’ [PaEN]
-- PJM Interconnection Board Proposes Its Own New Plan To Integrate A.I. Data Centers, Large Loads Into Grid To Maintain Reliability [PaEN]
-- House Energy Committee To Consider Bill Giving PUC More Authority To Regulate A.I. Data Centers Jan. 26; Hearings On Related Bills Jan. 26 and Feb. 2 [PaEN]
-- In Case You Missed It: A.I./Data Center Articles - NewClips From Last Week - January 16 [PaEN]
-- Utility Dive: PJM Updates 20-Year Forecast Of Electricity Demand Growth, Reducing Short Term Growth Estimates By Up To 2.6%, Increasing 2035 Estimate By 3.3% [PaEN]
-- PJM Interconnection: 2025 Year In Review Part III: Planning Prepares For Burgeoning A.I. Data Center Electricity Demand [PaEN]
-- PJM Interconnection Issues Cold Weather Alerts For Jan. 19 - Western Region; Jan. 20 Entire Regional Electric Grid [PaEN]
-- PennTAP Now Accepting Applications For RISE PA Decarbonization Grants For Small, Mid-Sized Manufacturers [PaEN]
-- Sustainable Pittsburgh Hosts Feb. 3 Webinar On A.I. Data Centers - Energy, Infrastructure, Policy Implications [PaEN]
-- ReImagine Appalachia Hosts Feb. 5 Webinar On Catching Heat: Opportunities, Challenges Of Using Waste Heat From A.I. Data Centers [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]
-- Green Building Alliance Hosts Jan. 29 Webinar On Opportunities For Training, Certification For Jobs Related To High-Performance Buildings, Sustainability [PaEN]
-- PA Leads The Nation In Constructing Federally Funded Electric Vehicle Charging Stations With 28 Now Open; Deadline For New Applications Jan. 30 [PaEN]
-- Center For Rural Pennsylvania: Number Of Electric Vehicles, EV Charging Stations Per County ]
-- Penn State, USC Partner On Center For CO2 Storage To Develop Practical Strategies For Underground Carbon Dioxide Storage [PaEN]
NewsClips:
-- AP: How The White House And Governors Want To Fix A.I.- Drive Power Shortages, Price Spikes
-- Reuters: White House Seeks Emergency Power Auction For Largest US Electric Grid [PJM]
-- Bloomberg: President Says He’ll Make Tech Firms Pay For Power; Calls For Emergency Electricity Auction In PJM
-- City & State PA Guest Essay: Your Energy Bill Keeps Rising, Here’s What We Can Do About It - By Rep. Elizabeth Fiedler (D-Philadelphia), Majority Chair, House Energy Committee
-- PennLive Guest Essay: PA Ratepayers Shouldn’t Be Subsidizing Power Lines For Maryland, DC - By Sen. Kristin Phillips-Hill
-- Marcellus Drilling News: US EIA Predicts Price Of Natural Gas To Dip 2% In 2026, Increase 33% In 2027 Driven By LNG Gas Exports [PDF of Article]
-- Marcellus Drilling News: Expand Energy CEO: Natural Gas Drillers Won’t Add New Production At $3.50 Gas Price-- $4.00 to $4.50 Is Needed To ‘Activate Supply Growth’ [PDF of Article]
-- Spotlight PA: Many PA Residents Don’t Want A.I. Data Centers In Their Communities; PA State Leaders Are Welcoming Them
-- Wilkes-Barre Times-Leader: Dallas Twp. , Luzerne County Residents Fill Public Hearing Space In Support Of A.I. Data Center Zoning Ordinance Limiting Centers To Industrial Zones
-- Scranton Times: Dozens Of Residents Pack Ransom Twp. Meeting To Oppose A.I. Data Center In Lackawanna County [PDF of Article]
-- Scranton Times - Chris Kelly Opinion: A.I. Data Centers Call For Hawks, Not Canaries [PDF of Article]
-- 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?
-- AP: Microsoft Pushes Big Tech To ‘Pay Our Way’ For A.I. Data Centers Amid Rising Opposition [PA Highlighted]
-- Talen Energy Buys 3 Natural Gas Power Plants In Ohio, Indiana To Service Growing Data Center Demand
-- 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]
-- YaleEnvironment360: US LNG Gas Exports Are Pushing Energy Bills Higher, Report Finds
-- Public News Service: Clean Energy Boom Adding Much-Needed Electric Generating Capacity To Grid In PA Threatened As Federal Funding Stalls
-- Post-Gazette - Anya Litvak: EOS Energy Storage Company Calls A.I. Data Centers An ‘Accelerant’ For Company’s Batteries
-- Utility Dive: US Senate Bill Would Exempt Fully Isolated A.I. Data Centers, Other Large Loads From FERC, DOE Regulation
-- AP: US Carbon Pollution Rose In 2025, Experts Blame Cold Weather, High Natural Gas Prices, Data Centers
-- TribLive: Dina Powell McCormick, Wife Of PA US Sen. Dave McCormick, Named Meta [Facebook] President
-- Post-Gazette: Sen. McCormick Says He Will Recuse Himself From Issues Specific To Facebook/Meta With His Wife’s New Role As Meta President
[Posted: January 16, 2026] PA Environment Digest
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