Tuesday, June 30, 2026

NRDC: PJM Membership Votes On Recommendations To Help Prevent A.I. Data Centers From Overloading The Electric Grid; PJM Board Will Have Final Say

On June 30, the
Natural Resources Defense Council reported the PJM Interconnection membership voted on two consequential proposals related to managing the explosion in electricity demand from data centers: the Reliably Backstop Procurement (RBP) and Connect and Manage (CAM). 

The RBP governs contracting with new power plants while CAM dictates how PJM will handle situations where there is more demand for power than available supply.

On the RBP, members recommended a proposal made by multiple utilities that focused on voluntary purchases carried the day. 

No CAM proposal won the required two-thirds support as PJM members preferred proposals that would cut off power to data centers when needed to protect other customers.

These votes act as recommendations to the PJM Board who are expected to vote in the coming weeks.

NRDC Statement

Tom Rutigliano, senior advocate, Climate & Energy at Natural Resources Defense Council issued this statement-- 

“PJM members supported a common sense approach to protect the public while contracting with new power plants. 

“The approved proposal for the Reliability Backstop Procurement ensures that the public will not be stuck with the bill to build new power plants for data centers. 

“It also directs PJM to focus on new supply located close to data centers, rather than building unnecessary transmission to move power from distant fossil fuel resources. 

“This is good news for clean energy, and avoids an expensive boondoggle that benefits fossil fuel companies at public expense.

“It’s disappointing that PJM members were not able to agree on a Connect and Manage proposal, but there was widespread agreement that PJM needs to take an active role in preventing data centers from harming reliability for everyone else. 

“Members soundly rejected proposals that would have had PJM do nothing as data centers overload the grid.

“The PJM Board must hear that message and decide on a proposal that both protects the public and respects states’ authority to manage data center growth. 

“The Board should also focus on eliminating any unnecessary barriers to new technologies like distributed storage or upgrades to existing power plants. 

“Most importantly, they must listen to state legislators and consumer advocates who believe that data centers should be removed from PJM’s capacity markets. 

“That one simple move would save consumers nearly $10 billion every year.”

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.

Resource Links:

-- PJM Interconnection Holds Next Generation Capacity Auction June 30, Results To Be Announced July 14  [PaEN]

-- PJM Adds New Emergency Procedures To Deal With Strained Grid: A Capacity Advisory; Directive For Data Centers To Use Backup Generators  [PaEN]

-- PJM Interconnection Issues Hot Weather Alert For June 29 In Western Region, June 30 to July 3 For Entire Service Area; 5th Alert This Season  [PaEN]

-- DOE Issues Emergency Orders To PJM Ahead Of Period Of Hot Weather

Related Articles This Week:

-- Senate Committee Moves Bills Authorizing Individual Municipalities To Enact Moratoriums On Consideration Of A.I. Data Center Proposals-- After Voting Down A Statewide 3-Year Moratorium  [PaEN] 

-- PUC Urges Consumers To Explore #WaysToStayCool and #SaveInPA As Region Faces Extreme Heat; PUC Monitoring PJM Electric Grid Operations  [PaEN]  

-- PJM Interconnection Issues Maximum Generation, Load Management, Low Voltage Alerts For July 1; Received Emergency Order To Put Data Centers On Backup Generators; Forecasts Peak Power Above 2006 Record For July 2  [PaEN] 

-- NRDC: PJM Membership Votes On Recommendations To Help Prevent A.I. Data Centers From Overloading The Electric Grid; PJM Board Will Have Final Say  [PaEN]  

-- Energy Efficiency Alliance Releases 15 New Case Studies Showing How Southwest PA Businesses, Organizations Are Saving On Energy Bills Thanks To Renewable Energy, Energy Efficiency [No Fuel - No Price Spikes]  [PaEN]

-- PUC Investigation Finds Fatal 2025 Philadelphia Rowhouse Natural Gas Explosion Not Related To Philadelphia Gas Works Facilities, Operations  [PaEN] 

NewsClips:

-- PA Capital-Star: Amid High Heat, Power Demand In PJM Territory Could Set Records -- Fortune Magazine: A.I. Data Centers Are So Hot Their ‘Heat Island’ Effect Is Raising Temperatures Up To 6 Miles Away

-- The Center Square: Individual Municipal A.I. Data Center Moratoriums Get Support In Republican-Run PA Senate

-- WESA - Rachel McDevitt: How To Find A Better Electric Rate In Pennsylvania

-- Utility Dive: PJM Opposes Connection Review Waiver For $2 Billion Gas-Fired Power Plant In Ohio In Fast-Track Interconnection Review 

[Posted: June 30, 2026]  PA Environment Digest

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