The suspension puts a planned bid opening on hold and jeopardizes PJM's goal of finalizing commitments before its next capacity auction in December. This delay leaves energy developers waiting for revenue certainty and leaves the region unable to meet its reliability requirements. FERC officials expressed concern that the fallback's expenses could be spread across existing customers if states do not assign them to the new large loads driving the demand.
Wednesday, October 21, 2026
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FERC Suspends PJM 6.8 GW Capacity Backstop Until Feb 28 2027
US Politics20 days ago
Electricity users risk paying for new power infrastructure if current rules for cost allocation to industrial loads remain unresolved. The Federal Energy Regulatory Commission on September 29 halted a 6.8 GW capacity backstop proposed by PJM, the largest electricity grid in the US, suspending the procurement plan until February 28, 2027. While the agency accepted most of the proposal, it opened a paper hearing to address disputes over exit rules, collateral, and the distribution of costs. Chair Laura Swett called the mechanism "deeply flawed" and cited billion-dollar implications for consumers.
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