PJM’s proposal would establish a new Interim Resource Adequacy Service (IRAS) for those new Large Load customers who do not bring their own power supply.
When electricity supply on the grid approaches dangerously low levels, a new emergency procedure would notify utilities to reduce or transfer the electricity demand from new Large Load customers ahead of any action that would serve to shut off traditional consumers, including residential consumers.
IRAS would apply to new Large Loads that have not brought their own new capacity or had their capacity needs covered through the Reliability Backstop Procurement, a special process designed to fill forecasted capacity shortfalls starting in June 2027.
Large Load Registry
PJM would create and maintain a Large Load Registry to track all Large Loads, existing and new, to provide states, utilities and regulatory agencies with the information they need to apply the IRAS service to Large Load customers if they choose.
The IRAS framework encourages states and the Electrical Distributors that serve their residents to reevaluate and amend the established plans that utilities and other Load Serving Entities (LSEs) follow when directed by PJM to reduce electricity demand, or load.
“The unprecedented addition of large loads, most notably data centers, has given rise to resource adequacy shortfalls – and associated real-time operational issues that IRAS is intended to address,” the filing states. Of 32 GW of growth in forecasted electricity demand between 2024 and 2030, 30 GW is attributed to data centers.
Bring New Capacity
To support the IRAS framework, PJM would require utilities and other LSEs to bring new capacity in an amount that equals or exceeds the combined peak demand of the new Large Loads.
[PJM defined “new capacity” in an earlier announcement.]
Failing that, PJM would direct these zones during emergencies to reduce electricity demand in proportion to their area’s share of new Large Load not supported by new generation.
This curtailment of service would come before calling on Load Management customers, who are paid in advance to reduce their electricity use when directed by PJM in emergencies.
States could use the Large Load Registry to identify which customers would be subject to IRAS.
Consistent With Ratepayer Protection Pledge
As laid out in PJM’s filing, this model is consistent with the Ratepayer Protection Pledge introduced in March 2026 and recently expanded in July 2026, which states that new Large Loads will “build, bring, or buy the new generation resources and electricity needed to satisfy their new energy demands, paying the full cost of those resources whether by building, or buying from, new or otherwise additive power plants” because it “advances self-sufficiency and protects Americans from higher prices.’”
A Large Load that is ordered to reduce its power usage could receive credit for helping maintain grid reliability.
States and their local utilities would manage how these retail costs are shared among customers in affected areas.
Large Loads could also waive that compensation consistent with the Ratepayer Protection Pledge to “protect the American people from increased utility bills as a result of the development of these data centers.”
The Large Load Registry, a database of information pertaining to Large Loads that will be established and maintained by PJM, will aid PJM in administering IRAS and other Large-Load initiatives to help balance supply and demand.
PJM would make this information available to states, utilities and regulators, subject to confidentiality requirements.
Notably, PJM proposes that beginning with the 2029/2030 capacity auction, new Large Loads that do not bring their own new supply to the system will not be included when calculating the future power needs to be procured in those auctions.
PJM requested FERC accept the petition within 60 days.
Click Here for the PJM submission summary.
Click Here for the PJM announcement.
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.
Related Articles This Week:
-- Governor’s Office Expected To Announce Further Steps To Regulate A.I. Data Centers ‘Shortly;’ 100 Data Center Proposals Being Discussed in PA, 55 Have Some Interaction With DEP [PaEN]
-- Concerned Citizens Of Montour County Announce Aug. 20 DEP Meeting To Discuss How The Environmental Justice Permit Policy May Apply To Proposed Talen Energy Natural Gas Power Plant In Derry Twp., Montour County [PaEN]
-- PJM, Dominion Energy Reviewing Impacts Of Sudden Disconnection Of 3,800 MW Of Electricity Load By A.I. Data Centers In Virginia On July 22
-- PJM: FERC Accepts PJM Minimum Capitalization Rules To Be Eligible To Participate In PJM Markets
Public Participation:
-- DEP Invites Comments On Air Quality Permit For Installation Of 86 More Backup Diesel Generators, Fuel Storage Tanks For An Expansion Of The Existing Amazon Data Center In Salem Twp., Luzerne County [PaEN]
-- Public Utility Commission Sets Oct. 29 Prehearing On Transource Pennsylvania, LLC 230kV Project 9A West Transmission Line In Franklin County [PaEN]
-- DEP Invites Comments On Stormwater Permit For PPL Electric Stanton Summit Transmission Line Rebuild In Lackawanna, Luzerne Counties [PaEN]
-- Scranton Times: 5th Hearing On Essential Energy Data Center Power Plant In Archbald Boro Resumes Aug. 18
-- Morning Call: Upper Mount Bethel Twp. Sets Aug. 24 Meeting To Consider $50 Million A.I. Data Center Agreement With Developers
-- PA Data Center Hearings & Meetings - Physicians For Social Responsibility PA
NewsClips:
-- The Center Square: Noisy A.I. Data Center Debate Goes On While PA Lawmakers On Summer Break
-- PA Capital-Star: A.I. Data Center Proposals Keep Coming To Pennsylvania - So Does The Outcry
-- WHYY - Susan Phillips: Opposition To A.I. Data Center Construction Is Rising Sharply, Penn Poll Says
-- Pittsburgh Business Times: General Assembly Likely To Take Up A.I. Data Centers Again Soon
-- Inquirer: How Josh Shapiro’s Early Embrace Of A.I. Data Centers Is Testing His High Popularity In Pennsylvania
-- Inquirer Editorial: Pennsylvania’s Data Center Boom Needs A Pause
-- Republican Herald Editorial: Don’t Delay Studies Of Health, Environmental Impact Of A.I. Data Centers
-- PA Capital-Star: A.I. Data Center Developers Want To Build In 3 PA Communities - Each Has Its Own Experience
-- Kleinman Center For Energy Policy Blog: Pennsylvania Has Yet To Meaningfully Regulate Exploding A.I. Data Center Development - By John Quigley, Senior Fellow [Part 1 of 2]
-- Kleinman Center For Energy Policy Blog: PA Responsible Infrastructure Development (GRID) Proposal For A.I. Data Centers Falls Well Short Of Its Stated Goals - By John Quigley, Senior Fellow [Part 2 of 2]
-- Pittsburgh Business Times - Babst Calland Law: One Year Later - How PA’s A.I. Data Center Rules Are Rewriting Deal Terms
-- Utility Dive: PPL Corp - Blackstone Joint Venture Secures 5 GW Of Natural Gas Turbines For A.I. Data Centers In Pennsylvania
[Posted: August 15, 2026] PA Environment Digest
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