FERC rejects most of PJM's temporary curtailment plan to manage data centers
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The Federal Energy Regulatory Commission rejected most of a plan devised by PJM Interconnection, the largest U.S. power grid, for bringing data centers and other large loads onto its system, including proposed interim service and “bring your own new capacity” rules, UtilityDive.com reported Monday.
Key parts of PJM's Interim Resource Adequacy Service framework, which would allow large loads to connect to the grid without matching new capacity if they agree to be curtailed in the lead-up to grid emergencies, intrude on state jurisdiction over retail rates and appear to discriminate against large loads, FERC said, as reported by UtilityDive.com.
FERC said PJM could submit a revised curtailment plan but would need to address various issues, including why data centers would be temporarily shut off from the grid before other large energy users.
PJM has been overwhelmed by an onslaught of data center electricity demand, which it forecasts to triple by 2030 to ~29 GW of capacity in its Midwest and Mid-Atlantic territory.
The ruling could lead to higher capacity prices for longer in PJM, which is favorable to independent power producers such as Constellation Energy (CEG), NRG Energy (NRG), Talen Energy (TLN), and Vistra (VST), Jefferies analysts said in a note.
"While there is still uncertainty within PJM's market construct/rules, the latest development is positive for existing generation/IPPs," Jefferies wrote.
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