EL26-67-001 · 2026-07-20 · Exelon CorporationThe FirstEnergy Transmission Companies

Exelon Corporation and FirstEnergy Service Company submit Request for Rehearing of the 06/18/2026 Order

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Topics in the text: Connecting load and generation · Filing procedure · Cost allocation

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Opening text

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While the Commission stated that these remain just and reasonable options, the Commission directed PJM to address whether its Tariff remains just and reasonable without allowing Eligible Customers taking transmission service on behalf of “flexible large loads” the option of taking one or more of…
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I. Statement of Issues/Specification of Error.

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Cir. 2010) (“[T]he Commission ‘must be able to demonstrate that it has made a reasoned decision based upon substantial evidence in the record.’”) (citation omitted); Consol.
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II. The Burden Under FPA Section 206 Has Not Been Met: The Existing Rate Has

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The FPA requires that the rates and charges of a public utility “in connection with the transmission or sale of electric energy subject to the jurisdiction of the Commission, and all rules and regulations affecting or pertaining to such rates or charges shall be just and reasonable.”9 “[A]ny such…
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A. There is No Evidence In The Record That Flexible Large Loads or Other

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Cir. 2021). 11 Under the APA, the Commission “must examine the relevant data and articulate a satisfactory explanation for its action including a ‘rational connection between the facts found and the choice made’”13 and must base its decision on substantial evidence in the record.14 Substantial…
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B. The Commission Did Not Engage in Reasoned Decision Making Because It Did

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In Order No. 888-A, the Commission held that customers cannot “split” their load at a delivery point—if some of the load takes Network Service, all of the load must be designated for Network Service: The concept of allowing a “split system” or splitting a discrete load is antithetical to the…
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C. The Loads Rely Upon The Entire Embedded Transmission System To Serve

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Cir. 2014) (“It is textbook administrative law that an agency must ‘provide[ ] a reasoned explanation for departing from precedent or treating similar situations differently,’ . . . and Commission cases are no exception . . . .”) (alteration in original) (citations omitted). 41 See, e.g., Cal.
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III. The Commission’s Suggested Replacement Rate Would Not Be Just and

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Under FPA section 206,44 there are two steps: only after the Commission finds a rate to be unjust and unreasonable, may it set a replacement rate.45 Even if the Commission has established that the current PJM Tariff is unjust and unreasonable with respect to the transmission services available to…
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A. Allowing Special Treatment For Flexible Large Load Would Violate The

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All., 860 F.3d at 663 (“If the Commission finds that a rate is ‘unjust, unreasonable, unduly discriminatory or preferential, the Commission shall determine the just and reasonable rate … and shall fix the same by order,’” and “[i]t is the Commission’s job—not the petitioner’s—to find a just and…
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B. The Commission’s Emphasis On Control Technologies and Protection

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As the Commission recognizes from PJM’s comments, “if the protection system fails, the large load would instantly take significant energy from the system” and “though a few such configurations may seem tolerable, the risk increases with large quantities of such 48 See Florida Gas, 604 F.3d at 639…
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C. CD Service Will Not Promote Efficiency Or Change Siting.

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Grid operators must plan for such eventualities to ensure system reliability.53
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D. The Commission’s Disregard of Reliability Considerations Underscores That

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The Commission’s Disregard of Reliability Considerations Underscores That The Proposed Replacement Rate is Not Just and Reasonable The new transmission service options that the Commission proposes to extend to flexible large load reflect the fact that the Commission overlooked important reliability…
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IV. FERC Exceeded Its Jurisdiction.

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IV.
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A. FERC’s Proposed Replacement Rate Violates the Major Questions Doctrine.

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FERC’s Proposed Replacement Rate Violates the Major Questions Doctrine. 56 Id.
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B. The Commission’s New Approach Infringes On State Retail Authority.

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Power Supply Ass’n, 577 U.S. 260, 275 (2016) (third alteration in original) (citation omitted). 65 Id. at 278. 66 Id. at 279–80 (alteration in original) (citations omitted). 31 unable to do indirectly what it cannot do directly, which is what it does when it intrudes on state regulatory authority…
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V. Conclusion

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V.
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Conclusion

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Conclusion Because neither the Commission nor any other complainant have satisfied their burden under FPA section 206 to show that PJM’s existing Tariff is unjust and unreasonable with respect to flexible large load (or any other type of load) and the Commission has not engaged in reasoned decision…
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CERTIFICATE OF SERVICE

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Dated at Chicago, IL this 20th day of July, 2026. /s/ Geneva Kennedy Geneva Kennedy Exelon Corporation
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