FERC asks grid operator PJM to revise plan to shield homes from data center costs
XLU•FERC partially approved PJM’s proposal to procure power but suspended it for five months, directing the grid operator to revise cost allocation so large energy users such as data centers cover costs tied to the process.
1. Plan suspended for revision
The Federal Energy Regulatory Commission directed PJM Interconnection to postpone and revise its one-time “backstop” electricity procurement proposal, which is intended to help close a power supply shortfall of more than 6,800 megawatts. FERC accepted core elements of the plan but suspended it for five months while opening further proceedings on cost allocation and other provisions.
2. Data center costs in focus
FERC said PJM must do more to ensure large energy users pay costs associated with securing power through the program, and asked the grid operator to use more up-to-date data center demand forecasts when allocating costs. “Existing customers should not be left paying costs attributable to new demand,” Commissioner Lindsay S. See wrote. PJM said it was working to incorporate the directives.
