DOE urges PJM to file backstop procurement fixes by Oct. 29 to shield ratepayers from data center costs
On Oct. 7, 2026, the U.S. Department of Energy filed a statement of position at FERC urging PJM to revise its reliability backstop procurement plan so that data center and other large load costs are not shifted onto existing customers. PJM intends to acquire 6.8 GW of new capacity to cover a shortfall from the 2028/29 delivery year auction, and the procurement, originally set to begin Sept. 30, was put on hold after FERC said parts of the proposal, including cost allocation, may be unjust and unreasonable. FERC has set a hearing process to run through February, and DOE backed allocating costs based on updated load forecasts with project-level tracking of large loads.
Developers and AI strategy leads planning load in PJM should expect large loads to be assigned the generation and infrastructure costs they trigger, along with tighter project-level reporting on whether projects enter service, are delayed, or are cancelled.
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