The PJM Interconnection received the go-ahead from the Federal Energy Regulatory Commission Dec. 4 to simplify its rules for connecting generation resources 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, PJM said.
The PJM Members Committee unanimously endorsed the proposed Tariff changes in September.
