ER26-3380-000 · 2026-07-31 · PJM Interconnection, L.L.C.

PJM proposes its first reliability backstop procurement

Read topic-matched comments in ER26-3380

Topics in the text: Cost allocation · Credit and exit · Reliability and curtailment

What the document says

Procurement · PDF pp. 8–26

Why PJM separated procurement from curtailment

PJM described the backstop and its forthcoming curtailment proposal as independent. It asked FERC to consider procurement even if the other tariff needed more review.

the two filings are independent of each other PDF p. 12
Filed comments: Reliability and curtailment

New capacity · PDF pp. 27–52

How a customer could reduce the target

The July proposal allowed newly contracted or self-supplied capacity to reduce the quantity PJM would buy. The customer had to report the capacity during the procurement window and provide evidence.

if reported to PJM within the RBP procurement window and supported by sufficient evidence PDF p. 38

Delivery risk · PDF pp. 53–80

What happens when promised capacity does not arrive

A project could retain its commitment through delays, but failing to supply any backstop capacity for three consecutive delivery years would cancel the balance of its 15-year commitment.

If the RBP Resource fails to provide any RBP UCAP MW after three consecutive Delivery Years PDF p. 68

Revenue settlement · PDF pp. 81–100

How the supplier would be paid

PJM proposed paying suppliers the shortfall after capacity-market revenue, subject to actual availability and clearing. Customers would fund the measured shortfall rather than a forecast.

Loads will fund the actual revenue shortfall, measured ex post PDF p. 88

Cost allocation · PDF pp. 101–120

Where state authority enters the bill

PJM distinguished the wholesale allocation it proposed from the decision retail regulators make about passing those charges on to individual customers.

allocation to retail customers, including data centers, is within the states’ and/or RERRAs’ purview PDF p. 111

Responses and related views

West Virginia warns restrictive offsets could drive an overbuy

Public Service Commission of West Virginia · Direct response

The West Virginia commission warned that complex rules could discourage participants from reporting qualifying capacity. That would make the final purchase larger than necessary.

PDF pp. 2–4, bilateral matching and offsets

Update the need when a project drops out

Organization of PJM States · Direct response

OPSI asked PJM to remove withdrawn large projects when setting the procurement target. Otherwise existing customers could pay for generation to meet demand that no longer exists.

PDF pp. 3–4, original August 21 comments

New Jersey wanted demand-side bids to have room to compete

New Jersey Board of Public Utilities · Direct response

The New Jersey board sought more flexible terms for demand resources and distributed resource aggregations in the original procurement. This concerned auction eligibility; it did not endorse the later peak-shaving formula.

PDF p. 15, footnote 54

Fifteen years of bills on one forecast

Illinois Commerce Commission and Joint Consumer Advocates · Direct response

Illinois regulators and the consumer advocates warned that a single end date for contracts could amplify forecast errors. FERC recorded that concern as it considered freezing load shares at one point in time.

PDF p. 40, footnote 144

Should the original forecast bind even if load never arrives?

Amazon and Northern Virginia Electric Cooperative · Direct response

Amazon argued that immutable shares would diverge from actual demand as projects changed. NOVEC asked why PJM considered a single snapshot appropriate.

PDF p. 40, responsive pleadings

The market monitor wanted new physical supply

Independent Market Monitor for PJM · Direct response

The monitor objected to eligibility rules that could let an existing resource reclassify its capacity. Its test was whether an award actually paid for additional physical supply.

PDF p. 15, responsive pleadings

Illinois supports a one-time buy, with conditions

Illinois Commerce Commission · Direct response

The ICC supported a one-time supplemental purchase but wanted protection against forecast error, data for state regulators and no new obligations on states. It warned that a modest percentage error in a larger forecast could mean paying for substantial unneeded capacity.

PDF pp. 1–2, 4, 6–7

West Virginia prefers to try buyer-seller matching first

Public Service Commission of West Virginia · Direct response

The commission opposed the original filing in its proposed form and on its proposed timetable. It wanted PJM to learn how much demand would be covered by bilateral contracts before setting a central procurement target.

PDF pp. 1–4

Pennsylvania’s consumer advocate challenges state-set wholesale obligations

Pennsylvania Office of Consumer Advocate · Direct response

The office argued that PJM was asking states to determine the shares suppliers would owe under a wholesale rate. It asked FERC to reject that design or explain how the new allocation would respect the line between state and federal authority.

PDF pp. 3–5

Data centers ask PJM to recognize self-supply

Data Center Coalition · Direct response

The coalition supported offsetting a new load’s own capacity purchases and procurement through bilateral deals. It also wanted backstop costs charged to loads driving the need rather than customers elsewhere.

PDF pp. 3–4

West Virginia declined to join the other commissions on the backstop

Organization of PJM States, recorded member positions · Direct response

OPSI backed a supplemental purchase. Its filing names support from Delaware, D.C., Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee and Virginia commissions. The West Virginia commission did not support the comments. OPSI also wanted to recalculate the target when projects withdrew.

PDF pp. 1–4, footnote 2 and comments

New Jersey wanted one cutoff for counting load across zones

New Jersey Board of Public Utilities · Direct response

FERC records the board’s comparison of one distributor counting projects from 50 MW and another reporting expansions from 20 MW. The board wanted a consistent threshold so that equally sized projects would not pay differently just because of where they connected.

PDF pp. 43–44, NJBPU comments summarized by FERC

Ohio’s federal energy advocate favored a state role in retail allocation

Office of the Federal Energy Advocate, Public Utilities Commission of Ohio · Direct response

FERC records support from the PUCO office for allowing states to determine the allocation to large loads. This is a different office and a different issue from the Ohio Consumers’ Counsel request for confidential registry access.

PDF p. 47, responsive pleadings, citing Ohio FEA comments p. 4

Google and other buyers ask for state access to cost-allocation data

Google, Equinix and Data Center Coalition · Direct response

FERC cites all three commenters as seeking to share the underlying allocation data with states. Those data would let a retail regulator see which wholesale obligations had been assigned before setting the customer’s retail rate.

PDF p. 49, footnote 191, citing Google comments p. 8

Source sections

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