EL26-67-000 · 2026-07-28 · Indicated PJM Transmission Owners
Motion for Abeyance of the Indicated PJM Transmission Owners and Request for Expedited Action and Shortened Comment Period
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UNITED STATES OF AMERICA
BEFORE THE
FEDERAL ENERGY REGULATORY COMMISSION
PJM Interconnection, L.L.C., et al.
)
Docket No. EL26-67-000
MOTION FOR ABEYANCE OF THE INDICATED PJM TRANSMISSION OWNERS
AND REQUEST FOR EXPEDITED ACTION
AND SHORTENED COMMENT PERIOD
Pursuant to Rule 212 of the Rules of Practice and Procedure of the Federal Energy
Regulatory Commission’s (“Commission” or “FERC”),1 the Indicated PJM Transmission Owners
(“PJM Transmission Owners”)2 respectfully move to hold the deadline to respond in the above-
captioned proceeding in abeyance for 90 days, until November 16, 2026.3 Good cause exists to
grant this motion because doing so will provide the PJM Transmission Owners adequate time to
determine the appropriate additions and revisions to the PJM Open Access Transmission Tariff
(“PJM Tariff”) and submit one or more filings pursuant to section 205 of the Federal Power Act
1
18 C.F.R. § 385.212 (2025).
2
The Indicated PJM Transmission Owners are: American Electric Power Service Corporation on behalf of its
affiliates, Appalachian Power Company, Indiana Michigan Power Company, Kentucky Power Company, Kingsport
Power Company, Ohio Power Company, Wheeling Power Company, AEP Appalachian Transmission Company, Inc.,
AEP Indiana Michigan Transmission Company, Inc., AEP Kentucky Transmission Company, Inc., AEP Ohio
Transmission Company, Inc., and AEP West Virginia Transmission Company, Inc.; The Dayton Power and Light
Company d/b/a AES Ohio; Dominion Energy Services, Inc. on behalf of Virginia Electric and Power Company d/b/a
Dominion Energy Virginia; Duke Energy Business Services, LLC for Duke Energy Kentucky, Inc. and Duke Energy
Ohio, Inc.; Duquesne Light Company; East Kentucky Power Cooperative, Inc.; Exelon Corporation on behalf of its
affiliates Atlantic City Electric Company, Baltimore Gas and Electric Company, Commonwealth Edison Company,
Commonwealth Edison Company of Indiana, Inc., Delmarva Power & Light Company, PECO Energy Company, and
Potomac Electric Power Company; FirstEnergy Service Company, on behalf of its affiliates American Transmission
Systems, Incorporated, Jersey Central Power & Light Company, Mid-Atlantic Interstate Transmission LLC, The
Potomac Edison Company, Monongahela Power Company, Keystone Appalachian Transmission Company, and
Trans-Allegheny Interstate Line Company (collectively, the “FirstEnergy Companies”); PPL Electric Utilities
Corporation; Public Service Electric and Gas Company; Rockland Electric Company; and the Southern Maryland
Electric Cooperative.
3
See PJM Interconnection, L.L.C., et al., 195 FERC ¶ 61,211, at 39 & n.111 (2026) (explaining that the
Commission will consider requests for full or partial abeyance of up to 90 days, including requests to hold in abeyance
the deadline to respond) (“Show Cause Order”). November 16 is the first business day after the end of the 90-day
abeyance period.
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(“FPA”) in response to the Commission’s Show Cause Order. The PJM Transmission Owners
further request a shortened comment period of five (5) days to facilitate the Commission issuing
an order granting the motion to hold the deadline to respond in abeyance no later than August 10,
2026.
I.
BACKGROUND
On June 18, 2026, the Commission issued a show cause order under section 206 of the FPA
to PJM, together with its transmission owners, directing PJM and the PJM Transmission Owners
to justify or reform the tariff provisions governing how large loads connect to and receive service
from the transmission system.4
The Show Cause Order preliminarily found that the PJM Tariff appeared to be unjust,
unreasonable, or unduly discriminatory or preferential because of a lack of sufficiently clear and
consistent provisions to address service for large loads and related configurations.5 The
Commission therefore directed PJM and its transmission owners, within 60 days, to show cause
why the PJM Tariff remains just and reasonable without provisions addressing: (1) the application
process, study procedures, and ongoing operational requirements for Eligible Customers seeking
transmission service on behalf of large loads; (2) additional transparency concerning Network
Upgrade costs for such service, together with the absence of a pro forma cost recovery agreement
and a mechanism to ensure related payments are properly credited to transmission owners’ revenue
requirements; (3) transmission service options tailored to flexible large loads willing and able to
limit their use of the transmission system under certain conditions; and (4) rates, terms, and
conditions applicable to interconnection customers serving “electrically proximate large load” or
4
Show Cause Order at PP 3, 35.
5
Id.
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co-located load.6 The Commission directed PJM either to justify the absence of such provisions
or to propose PJM Tariff revisions addressing those concerns.7
The Show Cause Order indicated that the Commission would consider requests from PJM
and/or transmission owners to hold all or certain aspects of the FPA section 206 proceeding in
abeyance, for up to 90 days, including the August 17, 2026, deadline to respond.8 The Commission
explained that the purpose of such an abeyance would be to provide PJM and the PJM
Transmission Owners time while they work through the stakeholder process to develop FPA
section 205 filings to revise the PJM Tariff to address the issues raised in the Show Cause Order.9
II.
MOTION TO HOLD DEADLINE TO RESPOND IN ABEYANCE
Consistent with the Commission’s directives in the Show Cause Order,10 the PJM
Transmission Owners respectfully request that the Commission hold the deadline to respond in
this proceeding in abeyance for a 90-day period, until November 16, 2026. Good cause exists to
grant this motion because doing so will allow the PJM Transmission Owners to address, through
one or more FPA section 205 filings, the issues identified by the Commission in the Show Cause
Order. The PJM Transmission Owners anticipate that the FPA section 205 filings submitted by
PJM and the PJM Transmission Owners will address the issues identified by the Commission in
the Show Cause Order. The PJM Transmission Owners will submit their FPA section 205 filing(s)
6
Id.
7
Id.
8
Id. at P 39. Because 60 days from issuance of the Show Cause Order falls on a Saturday, the deadline to
respond does not end until the close of business on Monday, August 17. See 18 C.F.R. § 385.2007(a)(2).
9
Show Cause Order at P 39.
10
Id.
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by no later than November 16, 2026, which is the date 90 days after the deadline to respond to the
Show Cause Order.11
As the Commission has recognized, the PJM Transmission Owners have exclusive and
unilateral rights regarding regional rates and rate design under the PJM Tariff and the cost
allocation provisions of Schedule 12 of the PJM Tariff.12 Consistent with this obligation, the PJM
Transmission Owners anticipate that their FPA section 205 filing(s) will contain a pro forma cost
recovery agreement(s), as well as rates for new transmission services for “flexible large loads” and
“electrically proximate large loads or co-located loads.” The PJM Transmission Owners’ filing(s)
would include any financial penalties applied to customers that fail to meet their contractual service
limits with respect to any new transmission services. The PJM Transmission Owners are also
considering whether the transparency findings in the Show Cause Order may require modifications
to the PJM Transmission Owners’ local planning procedures, such as Attachment M-3 to the PJM
Tariff. These items are discussed in greater detail below.
The PJM Transmission Owners have already begun these efforts in earnest, but a 90-day
abeyance is necessary to allow the PJM Transmission Owners sufficient time not only to develop
these PJM Tariff provisions, but to also provide PJM and PJM stakeholders an adequate
opportunity to review these provisions, and for the PJM Transmission Owners to consider any
11
See id. (“The Commission will consider requests from PJM and/or the Transmission Owners to hold, for up
to 90 days, all or certain aspects of this FPA section 206 proceeding in abeyance, including the deadline to respond
to this order.”) (emphasis added).
12
See Pa.-N.J.-Md. Interconnection, 105 FERC ¶ 61,294 (2003), order on compliance, 108 FERC ¶ 61,033
(2004) (approving Settlement Agreement, Docket Nos. OA97-261-006, et al. (filed Oct. 3, 2003), as modified,
Modification of Settlement Agreement, Docket Nos. OA97-261-009, et al., §§ 3.2, 4.2(B); 4.3, 4.5 (filed Jan. 20, 2004
and corrected Jan. 23, 2004)). The Settlement Agreement is incorporated into PJM OATT, § 9 and the Consolidated
Transmission Owners Agreement (“CTOA”) at § 7.3.1, PJM Interconnection, L.L.C., Rate Schedules, TOA, TOA-42
Rate Schedule FERC No. 42 (1.0.0).
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feedback received.13 Moreover, the PJM Transmission Owners will be actively working with PJM
during this time on the development of non-rate terms and conditions of the new services and
processes addressed in the Show Cause Order.
A.
Development of a Pro Forma Cost Recovery Agreement
In the Show Cause Order, the Commission preliminarily found that PJM’s Tariff appears
to be unjust and unreasonable because it lacks adequate mechanisms to mitigate the risk of cost
shifting among transmission customers.14 The Commission indicated it was concerned about the
apparent lack of a pro forma cost recovery agreement to help ensure that Eligible Customers taking
transmission service on behalf of large loads bear the risk and are ultimately responsible for costs
incurred to provide transmission service, including the cost of Network Upgrades.15 The
Commission noted that such an agreement would require “the Eligible Customer to make a
minimum contribution toward the transmission owner’s transmission revenue requirement, if the
Eligible Customer ultimately takes less transmission service than anticipated because the large
load does not materialize as planned or is not developed at all.”16 The Commission stated its
finding is not intended to alter or call into question existing regional cost allocation methods for
Network Upgrades, but instead is focused on helping to prevent cost shifting among transmission
customers.17
13
The PJM Transmission Owners have a contractual obligation to engage in coordination and consultation with
PJM and the PJM Members Committee with respect to changes to the PJM Tariff. See CTOA at § 7.5.1.
14
Show Cause Order at P 66.
15
Id. at P 66.
16
Id. at P 81.
17
Id.
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As explained in their comments in the ANOPR proceeding,18 and acknowledged by the
Commission in the Show Cause Order,19 a number of PJM Transmission Owners have already
been active in developing bilateral retail and FERC-jurisdictional agreements with large load
customers that include protections against cost shifting.20 Nevertheless, the PJM Transmission
Owners acknowledge and appreciate the concerns raised by the Commission in the Show Cause
Order regarding the need to ensure that costs are not inappropriately shifted from large load
customers to other transmission customers. To that end, the PJM Transmission Owners intend to
develop and file a agreement or agreements to mitigate the risk of cost shifting among transmission
customers and ensure eligible large load customers pay their share of system upgrades. As the
Show Cause Order recognizes, however, this involves working through and resolving a number of
important issues, such as the interaction with and potential overlap between a pro forma cost
recovery agreement and bilateral cost recovery agreements between utilities and retail customers,
as well as the specific mechanism for determining each Eligible Customer’s required minimum
contribution. The PJM Transmission Owners are also considering the extent to which changes
will be needed to each transmission owner’s individual transmission rates and/or other tariff
provisions, such as the formula rates set forth in Attachment H to the PJM Tariff.
18
See Interconnection of Large Loads to the Interstate Transmission System, Advance Notice of Proposed
Rulemaking, Docket No. RM26-4-000 (dated Oct. 23, 2025) (“ANOPR”); see also Letter from Chris Wright, Sec’y,
U.S. Dep’t of Energy, Docket No. RM26-4-000 (dated Oct. 23, 2025).
19
Show Cause Order at P 82 & n.159.
20
See e.g., PECO Energy Co., 195 FERC ¶ 61,074 (2026); Commonwealth Edison Co., 194 FERC ¶ 61,181
(2026); Commonwealth Edison Co., 194 FERC ¶ 61,183 (2026); Commonwealth Edison Co., 194 FERC ¶ 61,184
(2026); Commonwealth Edison Co., 194 FERC ¶ 61,185 (2026); Commonwealth Edison Co., 194 FERC ¶ 61,106
(2026); Commonwealth Edison Co., 194 FERC ¶ 61,109 (2026); Commonwealth Edison Co., 194 FERC ¶ 61,110
(2026); Commonwealth Edison Co., 194 FERC ¶ 61,113 (2026); PECO Energy Co., 193 FERC ¶ 61,148 (2025).
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B.
Rate Design Related to Transmission Services for Large Loads
In the Show Cause Order, the Commission preliminarily found that the PJM Tariff appears
to be unjust and unreasonable because it does not include transmission services that reflect Eligible
Customers taking transmission service on behalf of “flexible large loads” that are willing and able
to limit their use of the transmission system under certain conditions.21 The Commission
preliminarily found that new transmission services should be available to “flexible large loads”
willing and able to limit their withdrawals, specifically the three new services it required for co-
located loads: (1) Interim Network Integration Transmission Service, (2) Firm Contract Demand,
and (3) Non-Firm Contract Demand.22 The Commission also preliminarily found that the PJM
Tariff appears to be unjust and unreasonable because it does not contain provisions allowing a
generator interconnection customer to seek interconnection service(s) that reflect the operational
dynamics of serving either: (1) an “electrically proximate large load,” or (2) a co-located load.23
Because the PJM Transmission Owners have the FPA section 205 filing rights with respect
to regional rates and rate design under the PJM Tariff, the PJM Transmission Owners’ section 205
filing(s) made in response to the Show Cause Order will include the rate-related provisions for any
new transmission services that PJM offers to “flexible large load,” as well as any services
applicable to “electrically proximate large load.” The PJM Transmission Owners will also work
to coordinate any proposal with the rate design proposals at issue in the PJM Co-Located Load
proceeding24 for these new services, subject to the Commission’s directives on compliance set
21
Show Cause Order at P 86.
22
Id.
23
Id. at P 95.
24
See, e.g., Initial Brief and Joint Responses of the Indicated PJM Transmission Owners to Paper Hearing
Questions, Docket Nos. EL25-49-000, et al. (filed Feb. 23, 2026).
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forth in its June 18, 2026, order in that proceeding.25 However, even assuming this is the case, the
PJM Transmission Owners will need sufficient time to carefully consider, in coordination with
PJM and other interested stakeholders, what additions and modifications are necessary to adapt
those rate proposals to new services available to Eligible Customers taking transmissions service
on behalf of “flexible large loads” and/or “electrically proximate large loads.”
In addition to the rates for new transmission services applicable to large loads, the PJM
Transmission Owners will also be considering whether to propose financial penalties applicable
to customers taking one or more of the new transmission services that fail to comply with their
contractual withdrawal limits. Again, the PJM Transmission Owners anticipate that they will be
able to utilize much of the work done to develop the financial penalty proposal they filed in the
PJM Co-Located Load proceeding, but similarly will need to work through the details of how that
proposal will apply to other types of large load customers.
C.
Transparency Obligations Related to Network Upgrades Needed for Large
Load Customers
In the Show Cause Order, the Commission preliminarily found that the PJM Tariff appears
to be unjust and unreasonable because it does not contain provisions requiring the provision of
data on PJM’s website:
in a single location, and in an easily accessible format that is searchable and allows
users to filter the data, on transmission service requested by Eligible Customers on
behalf of large loads, for Network Upgrades evaluated in the local transmission
planning process that are needed to provide transmission service to Eligible
Customers on behalf of those large loads, and the costs for those Network
Upgrades.26
25
PJM Interconnection, L.L.C., et al., 195 FERC ¶ 61,209 (2026).
26
Show Cause Order at P 71.
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The Commission preliminarily found cost transparency measures are needed to provide
stakeholders with sufficient information and visibility regarding the Network Upgrades, and their
associated costs, needed to provide transmission service to Eligible Customers on behalf of large
loads.27
There are two workstreams here relevant to the PJM Transmission Owners. First, the PJM
Transmission Owners will be working closely with PJM to develop appropriate provisions to
provide the level of transparency anticipated in the Show Cause Order. The PJM Transmission
Owners’ role here is key because they will be designing, developing, and constructing many of the
Network Upgrades necessary to accommodate the interconnection of new large loads to the
transmission system. This effort will involve working through a number of important issues,
including ensuring appropriate confidentiality protections, compliance with anti-trust laws, and
updating, where applicable, websites and databases to house such information.28
Second, the PJM Transmission Owners are considering what, if any, PJM Tariff
modifications they will need to include in their own FPA section 205 filing(s) relating to
transparency enhancements. Under the CTOA, the PJM Transmission Owners retain their rights
with respect to local transmission planning matters.29 If the PJM Transmission Owners determine
that revisions to the PJM Tariff are needed with respect to local planning matters, such as the
provisions of PJM Attachment M-3, the PJM Transmission Owners will include such provisions
in their FPA section 205 filing(s) made in response to the Show Cause Order.
27
Id.
28
See, e.g., PJM, Project Status & Cost Allocation, https://www.pjm.com/planning/m/project-construction (last
visited July 28, 2026).
29
See CTOA at §§ 5.2, 5.6.
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III.
REQUEST FOR EXPEDITED CONSIDERATION AND SHORTENED
COMMENT PERIOD
The PJM Transmission Owners respectfully request expedited consideration of this motion
for abeyance and request that the Commission issue an order granting the motion no later than
August 10, 2026. Expedited consideration and the issuance of order by that date will provide the
PJM Transmission Owners sufficient assurance that they will have adequate time to develop and
submit one or more FPA section 205 filings necessary to implement the rates, terms, and conditions
necessary to address the Show Cause Order, as discussed above. Expedited consideration will also
allow the PJM Transmission Owners to focus their efforts on developing their FPA section 205
filing(s) rather than spending critical time preparing separate responses to the Show Cause Order.
Consistent with this request, the PJM Transmission Owners also seek a shortened comment period
on this motion for abeyance. Specifically, the PJM Transmission Owners request that the
Commission establish a comment period of five (5) days. Good cause exists to grant a shortened
comment period for the reasons set forth above. Moreover, no party will be prejudiced as a result
of granting a five (5) day comment period, as the additional time and certainty afforded by an
expedited order will accrue to the benefit of stakeholders by providing the PJM Transmission
Owners sufficient time to solicit and consider stakeholder feedback on their proposals.
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IV.
CONCLUSION
For the reasons set forth above, the PJM Transmission Owners’ request that the
Commission establish a five (5) day comment period for answers to this motion and issue, on or
before August 10, 2026, an order granting the PJM Transmission Owners’ request to hold the
deadline to respond in this proceeding in abeyance for 90 days, until November 16, 2026.
Respectfully submitted,
/s/ Michael Kunselman
Michael Kunselman
Richard P. Sparling
Nicholas J. Cicale
Jonathan A. Namazi
Davis Wright Tremaine LLP
1301 K Street NW
Suite 500 East
Washington, DC 20005
Counsel for the FirstEnergy
Companies
On behalf of the Indicated PJM
Transmission Owners
Dated: July 28, 2026
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CERTIFICATE OF SERVICE
Under Rule 2010 of the Commission’s Rules of Practice and Procedure, 18 C.F.R. §
385.2010 (2025), I hereby certify that I have this day served the foregoing document upon each
person designated on the official service list compiled by the Secretary in this proceeding.
Dated at Washington, D.C., this 28th day of July 2026.
/s/ Daniel Klein
Daniel Klein
Davis Wright Tremaine LLP
1301 K Street NW
Suite 500 East
Washington, DC 20005