Critical Power / Data Center Transitions
PJM’s amended reliability-backstop proposal puts “firm” large-load growth under a brighter light.
The October 29 proposal is not a final requirement, but it would make the timing and status of large-load growth consequential in a 2028/2029 capacity procurement.
On October 29, PJM said it filed an amended Reliability Backstop Procurement proposal at FERC. PJM’s stated aim is a one-time procurement beginning March 1, 2027, to address a capacity shortfall associated with the 2028/2029 Delivery Year. PJM said the shortfall will be recalculated using updated information; its announcement describes the prior auction result as approximately 6,800 MW short.
The proposal is still a proposal—not an effective rule for a facility or its customer. PJM says FERC largely accepted its initial filing on September 29 but suspended execution for five months while certain topics are resolved. The amended proposal changes the cost-allocation method, load-serving-entity credit requirements, and responsibilities if a load-serving entity exits PJM.
PJM now proposes to allocate charges through load-serving entities using Large Load growth between actual summer-peak load in 2026 and the 2028/2029 forecast. Under the proposal, electric distributors would report firm Large Load quantities before the March bid window; PJM would determine the procurement target and supply amounts on April 28 and post results May 10. PJM also says qualifying bilateral capacity contracts would reduce the target to avoid double procurement.
FRG operational interpretation, not a tariff, engineering, or legal finding: for a large facility that is expanding, consolidating, moving workloads, or retiring capacity in PJM territory, load forecasts should not live only in a project schedule. Preserve the decision record behind a material ramp, delay, cancellation, or transfer; identify the serving utility and load-serving entity early; and keep commissioning, energization, and migration milestones aligned with the information that may be reported upstream.
A migration date does not by itself establish a change in firm load, and this PJM proposal does not create a new reporting duty for every data center. The applicable service agreement, tariff, utility process, and any eventual FERC outcome control. Before treating a site exit or capacity handoff as settled, confirm how the serving parties will characterize the load and its timing.