The PJM Interconnection and stakeholders on Wednesday advanced several components of a plan to streamline the connection of data centers and other large-load customers while maintaining grid reliability.
Forecasted electricity demand from large-load customers in PJM and elsewhere is outpacing the ability to build enough new generation to serve them, impacting both the reliability of the grid and cost of electricity.
The Markets and Reliability Committee approved two Issue Charges March 25 to study a “connect-and-manage” approach to large loads that will be worked in a new Connect and Manage Senior Task Force, which will begin meeting March 31.
The connect-and-manage framework is an interim solution. It is meant to assign any shortfall in supply to entities that are interconnecting new large-load customers until the addition of new generation catches up with demand.
The PJM Issue Charge calls for a new emergency procedure to be developed that would issue curtailment instructions to load serving entities. Such curtailment would be expected to occur infrequently, for limited durations, and only when necessary to prevent broader system impacts.
At the request of members, language from a Data Center Coalition proposal was incorporated into the PJM Issue Charge to broaden the discussion about when curtailment would occur. The Data Center Coalition then withdrew its separate proposal.
The PJM Board of Managers has directed PJM and stakeholders to complete this work for implementation by the end of the year.
A complementary Issue Charge presented by Exelon would explore customer flexibility solutions to allow large-load customers to connect to the grid prior to the completion of necessary transmission upgrades. It includes three options for those customers to rely on while these upgrades are under construction – by agreeing to be subject to load curtailment under certain conditions or providing their own backup from energy storage or traditional generation – to address transmission deliverability issues.
Also Wednesday, at the Members Committee meeting, PJM separately announced that after surveying members and consulting with the Board, it will initiate an expedited version of the Critical Issue Fast Path stakeholder process to develop a proposal for a Reliability Backstop Procurement mechanism.
This one-time procurement would secure power supplies needed in the future and be paid for by large loads to mitigate capacity auction shortfalls and is intended to align with the principles announced by the White House and PJM state governors in January.
Recent auction results for the 2027/2028 Delivery Year cleared enough resources to meet future need while falling 5.6% – or 6,600 MW – short of the Installed Reserve Margin target.
Further efforts directed by the Board remain the focus of intensive deliberation among PJM Members and stakeholders as they address longer-term solutions to issues of insufficient power supplies, affordability and grid reliability in the face of extraordinary demand.
Two key proposals filed at the Federal Energy Regulatory Commission Feb. 27 seek approval to extend the existing price collar used in the capacity auctions for two additional delivery years and expedite interconnection studies of new power generation that meet certain requirements.
At the Members Committee meeting, PJM presented a timeline of all the resource adequacy initiatives underway.
