FERC Rejects PJM Data Center Curtailment Plan, Approves Load Registry
FERC on Oct. 9 rejected the core of PJM’s large load plan, including the curtailment-based interim service for data centers without matching new capacity, Utility Dive reports.
What FERC Decided
FERC said key parts of PJM’s Interim Resource Adequacy Service (IRAS) intrude on state jurisdiction over retail rates and appear to discriminate against large loads. IRAS would have let large loads connect without matching new capacity if they agreed to be curtailed ahead of grid emergencies. FERC said several provisions put obligations directly on new large loads, which are mostly retail customers. It also said other provisions dictate which retail customers get curtailed, and that the compensation framework appears to set a retail rate.
FERC did approve PJM’s definition of large loads and a large load registry. The registry would capture a facility’s location, ramp schedule, capacity supply and other details. FERC urged states to keep working on which retail customers must be curtailed when the system is stressed.
The order came about five weeks after FERC rejected key elements of PJM’s backstop capacity procurement proposal. Jefferies analysts said the ruling could mean higher capacity prices for longer, which favors Constellation Energy, NRG Energy, Talen Energy and Vistra. They said the proposal could return in minimal form, likely led by states, with Ohio and Pennsylvania as the ones to watch. Commissioner David Rosner warned in a concurring statement that excluding IRAS loads from the capacity auction demand curve could produce a market signaling ample capacity “while the region sheds thousands of megawatts of demand on an involuntary basis.”
PJM spokesman Jeffrey Shields said the grid operator is reviewing the order. No date has been reported for a PJM compliance filing or any state proceedings.
What It Means for Subcontractors
- Next gates: PJM’s review of the order comes first. State curtailment rules, with Ohio and Pennsylvania flagged by Jefferies, come next. No filing deadline is stated, so confirm dates with your customer’s interconnection team.
- Registry: Approved registry entries include location, ramp schedule and capacity supply. Electrical and civil contractors working with data center developers should expect owners to ask for firm construction schedules and power-supply details.
- Our read: With a fast-track connection tied to curtailment off the table for now, developers have a stronger reason to pair projects with their own generation. That points to demand for behind-the-meter generation work (mechanical, pipefitting, E&I, foundations) and for substation and interconnect line packages. No specific projects or procurement stages have been named, so treat this as a direction, not a bid list.
- Our read on timing: No timelines have been announced, so don’t expect new awards from this order alone. Interconnection lead times and state rulemaking will likely set the pace. Check current backlog and equipment lead times before committing crews to speculative work.
- Contract terms: If a data center owner’s energization date depends on PJM or state rules, ask for schedule-relief and standby-cost language in your subcontract. The curtailment framework is unsettled, and delays tied to it could land on your cash flow.
- Utility-side work: Higher capacity prices in PJM, per Jefferies, benefit existing generators. Plant owners that gain from that outlook are a possible source of maintenance and upgrade work. No such spending has been confirmed.
