The Federal Energy Regulatory Commission on September 29, 2026, approved only parts of a plan by PJM Interconnection to run a backstop procurement for power capacity to serve data centers. PJM then delayed the auction, which had been set to open on September 30 and accept offers through October 21, Utility Dive reported.
PJM, the largest US grid operator, serves 13 states and the District of Columbia. It fell short of its reserve margin targets in its last two base capacity auctions, largely because of data center load forecasts. The backstop process aims to acquire 6.8 GW of new capacity to cover a shortfall for the 2028/29 delivery year, though PJM may lower that target as new supply is added.
FERC accepted an offer cap of $555 per megawatt-day and found PJM's collateral requirements for power suppliers appropriate. It found problems with cost allocation, transmission owner exit rules and collateral for load-serving entities. Northern Virginia Electric Cooperative said it would have to post roughly $2 billion in collateral under the proposal. FERC also rejected an opt-out for qualifying cooperatives and municipal utilities, and proposed allocating costs based on updated load forecasts.
FERC Chairman Laura Swett wrote in a concurring statement that the commission would not be forced into accepting a flawed, eleventh-hour mechanism with billion-dollar implications for consumers. Commissioner Lindsay See said grid operators need better load forecasts and a clearer picture of which projects will materialize.
PJM spokesman Jeffrey Shields said the grid operator is reviewing the order and expects to move quickly, with a new timeline still to be set. PJM had planned to select offers from October 22 through December 2 and announce results before its 2029/30 capacity auction in early December.
Source: Utility Dive - https://www.utilitydive.com/news/pjm-delays-backstop-procurement-ferc-data-center/831751/