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A NEWSLETTER FROM ADVANCED ENERGY UNITED

July 13, 2026

The July PJM Bulletin arrives as the region navigates a pivotal moment, marked by extreme weather, high-stakes policy decisions, and growing stakeholder engagement. Just a week ago PJM achieved a new all-time system peak load on July 2, underscoring the urgency of addressing reliability challenges amid soaring demand. This milestone follows months of intense scrutiny and debate, with stakeholders closely watching PJM’s response to unprecedented pressures.

Key developments in June included the key voting on the final Reliability Backstop Procurement (RBP) and Connect and Manage (CAM) proposals, alongside FERC’s unprecedented involvement in shaping the region’s future. These decisions carry significant implications for ratepayers, market design, and the long-term resilience of the grid.

Looking ahead, PJM and stakeholders are preparing for an upcoming technical conference at the Federal Energy Regulatory Commission on PJM governance, where further reforms and accountability measures will take center stage. This conference follows robust discussions on whether PJM’s current structures can deliver both reliability and affordability—a question that grows more urgent with every passing peak demand event.

As the region braces for continued challenges, this month's Bulletin highlights the critical decisions made in recent weeks, the evolving role of FERC, and the steps PJM and its stakeholders are taking to secure a stable and sustainable energy future.

Key PJM Updates & Policy Developments  

PJM Sets New All Time System Peak Load on July 2nd 

During the early July heat wave, PJM set a new all-time system peak of 168,158 MW on July 2nd, breaking the previous all-time record of 165,600 MW set in 2006. PJM is currently estimating that 5-6,000 MW of demand response allowed PJM to meet the July 2nd peak. Solar and wind also contributed significantly. 

PJM Reliability Backstop Procurement (RBP) and Connect and Manage (CAM) Proposals and Process: 

On June 30, PJM membership voted on two new proposals outlining new and unique market constructs aimed at allowing data centers to connect to the grid while ensuring grid reliability and protecting ratepayers from data center related costs, wrapping up an expedited Critical Issue Fast Path (CIFP) process that began on April 8.  

• Reliability Backstop Procurement (RBP) creates a means for data centers to secure new supply outside of the standard capacity auction; 
• Connect and Manage (CAM) creates rules for interrupting service to data centers when there is more demand for power than available supply on the PJM grid.

PJM’s Members Committee voted on multiple competing proposals to implement these two concepts, ultimately endorsing only one of 13 RBP-related proposals advanced by stakeholders and staff, and rejecting all 11 CAM proposals. This was an indicative, non-binding vote – informational only for the PJM Board who has indicated after the vote that they would file separate CAM and RBP proposals to FERC by July 10th for FERC approval.  

The only proposal to achieve the “sector weighted” voting threshold required by PJM rules to be considered a “passing” vote was the joint EDCs/Data Center Coalition RBP proposal, discussed further below.  

While PJM members were not able to agree on details of specific proposals, there was agreement that PJM and the states need to take an active role in preventing data centers from increasing consumer costs and jeopardizing reliability. Many stakeholders raised jurisdictional concerns regarding who had ultimate oversight and authority over key implementation aspects of CAM between PJM and the states. 

What's in the proposals: 

The “winning” Reliability Backstop Procurement proposal echoed many of the elements in the PJM staff proposal, including a “matchmaking” period between large-load demand and power suppliers, which would be followed by a central procurement. The proposals differ however on the demand side. The successful proposal outlines a registry-based subscription model, with large loads signing up to procure capacity and PJM basing its capacity target on that registry. PJM staff’s proposal would procure enough new capacity to cover the region's entire projected shortfall. The winning proposal aims to tie the additional costs of new capacity more directly to the new large load demand. It also seeks to locate the new large loads and their electricity supplies relatively near to each other by adding a “locational commitment constraint” designed to mitigate a scenario where supply resources procured through the RBP are located far from the large load it is intended to serve, potentially reducing the real-time reliability benefits to that area associated with the new resource. The locational constraint could also avoid increased RTEP costs over time as PJM planning identifies needs to address transmission reliability constraints. Similar to PJM’s CAM design, the winning RBP proposal also envisions PJM establishing a “registry” of large data centers and their electricity demands.  

While none of the CAM proposals passed the stakeholder approval threshold, PJM is expected to include some version of CAM in its FERC filing. Throughout most of the CIFP, the version championed by PJM would have the RTO calculate the amount of large load not covered by the RBP, bilateral agreements or new capacity brought by the large load, then allocate a corresponding amount of curtailable megawatts to each utility. One of the largest sticking points was how the proposal would interact with state jurisdiction over curtailment; PJM sought to address the barrier by leaving it up to states to enact retail tariffs requiring utilities to curtail large loads. PJM ultimately dropped its support for a mandatory curtailment model in favor of a large load registry, with the goal of informing state and utility efforts to enact their own curtailment systems. Those models could then flow up to PJM as it develops an “operational toolkit to drive load reductions and interruptability protocols.” 

Other proposals tackled discrete elements of the RBP and CAM design, raising issues that may be protested at FERC if not addressed in PJM’s filing. These include (among other topics): 

• Many advocates have called for a regional framework to ensure that the capacity a large load brings contributes to resource adequacy as PJM measures it, rather than counting resources that a patchwork of state definitions might credit inconsistently. PJM itself has acknowledged the risk of a segmented approach: "Absent state and industry partner action on implementing these types of state level reforms, residential customers (as opposed to large load customers) may be disproportionately impacted by costs and manual load shed directives issued as part of PJM's emergency procedures."  
• The State Legislators Collaborative and key stakeholders have expressed concerns that CAM loads should be deployed prior to pre-emergency or emergency load management (DR) resources - new large loads participating in load management programs should be dispatched at the same time as pre-emergency and emergency DR (not after.) stating failure to follow this dispatch order will increase the cost of DR in PJM, discourage new market entry, and potentially lead to existing DR exiting the market due to event “fatigue.”  

PJM president and CEO David Mills said these plans will be essential to managing short-term capacity tightness while the grid operator undertakes long- term reforms. “These are transitional steps,” he said. Mills went on to say that the PJM board will now try to reconcile the successful Reliability Backstop Procurement design with the various possibilities outlined in the unsuccessful Connect and Manage proposals. “Our next challenge as a group is to sit down and … make sure that we can make logical sense of how those pieces fit together,” Mills said after the vote. “That's going to be a big lift for us,” he added. The PJM board is aiming to file its plans with FERC by mid-July so that the Reliability Backstop Procurement can commence in September as was requested by the FERC Chair, the PJM Governor’s Coalition, and the Energy Dominance Council. PJM and virtually all PJM stakeholders preferred an earlier plan that called for a later RBP that would occur after a six-month facilitated bilateral contracting period, with the RBP procuring only the supply needs remaining after bilateral contracting.  

Unprecedented FERC involvement in the PJM RBP/CAM member/stakeholder process 

FERC Chair Laura Swett, in an unprecedented action, requested that PJM conduct a member poll consisting of questions developed by FERC related to the RBP/CAM proposals. The questions focused primarily on jurisdictional issues around FERC/PJM vs state authority to interrupt retail data center customers as part of potential connect and manage protocols, creation and management of a data center registry, and how the proposed RBP will interact with the regular ongoing PJM capacity market auctions (see story below on current auction). PJM discussed the poll at the June 30 Special Members Committee, and PJM announced it would open a Qualtrics poll for voting members. PJM issued a PDF of the poll, with voting open to those stakeholders with PJM Members Committee roster representatives. The poll closed on Friday, July 10 at 5:00 PM.  Results of the poll will be posted on the PJM RBP/CAM CIFP page. The results will be compiled in aggregate at the sector level, and verbatim responses will be posted without attribution. Detailed voting reports indicating how each company responded will not be prepared or posted.  PJM intends to include the aggregate polling results and/or non-attributed verbatim responses in its filing with FERC.  

The board had indicated it would file the RBP/CAM proposal at FERC on July 10, the same day poll results are due. It is unclear the extent to which the polling process will disrupt the Board’s filing timeline and/or the planned September auction timing. 

FERC Issues Agenda for Tech Conference Exploring the Current State of PJM Governance  

FERC’s Commission-led Technical Conference on PJM Governance and Stakeholder Reforms, first announced by Chair Swett in her presentation to the PJM Board at the PJM annual meeting, will take place July 23 at FERC in Washington, D.C. .  FERC issued a notice including a final agenda and list of panelists on July 2.  Panel 1 will focus on PJM Governance mechanics, panel 2 will focus on the stakeholder process. The notice set July 14th, as the official deadline for pre-filed statements. The Technical Conference is open to the public, and will also be live-streamed on the FERC website on July 23 and archived for future viewing. 

 PJM Annual Capacity Auction Window closed July 7th 

The offer window for the 2028/2029 capacity auction (for the delivery year beginning June 2028) opened on June 30 and closed on July 7, and results will be posted after 4pm on July 14. Prices are capped at approximately $325/MW-day, with a floor of $175/MW-day, following a PJM requested, and FERC approved extension of the price caps in April 2026. The price collar, which originated from a negotiated settlement between PJM and PA Governor Josh Shapiro in April 2025, has prevented prices from spiking further, and every auction since the collar has been in place has cleared at the cap.. While the price cap and floor may reduce volatility, they do not solve the underlying supply-demand imbalance. Addressing that challenge requires either bringing more resources onto the system or moderating the pace of demand growth. 

Recent auction results have become one of the clearest indicators that electricity demand is growing faster than new generation can be built to supply it, and according to PJM, the primary driver of that growth is data centers. New data center facilities and expansions of existing sites can be developed quickly, up to two to three times faster than many of the electricity generation technologies that are necessary to serve them and allow PJM to maintain the reliability customers expect. The tightening balance of supply versus demand has contributed to higher capacity prices and raised concerns about the long-term ability of the system to deliver reliable service on a 24/7 basis. PJM has initiated the RBP/CAM proposal process to address data center-related concerns (See RBP/CAM story above). 

FERC Filings & Decisions

The Federal Energy Regulatory Commission is the independent agency that regulates interstate transmission of electricity, natural gas, and oil. As the agency that oversees regional transmission organizations such as PJM, it is important to know what FERC is working on and how this may impact consumers in your state. The following FERC filings and decisions are worth tracking this month.

Expedited Interconnection Track (ER26-1563-000):  

On June 9, 2026, FERC accepted PJM’s proposed EIT, effective June 10, 2026 and July 31, 2026. The EIT will create a separate parallel process apart from the regular Cycle process to study up to 10 interconnection requests per calendar year for two years (20 total projects); selected projects must be commercially operational within 36 months of application. The order accepts eligibility requirements and finds that the EIT meets the independent entity variation under Orders Nos. 2003 and 2023. 

Order 1920 Compliance (RM21-17-000):  

On June 11, 2026, FERC issued a notice granting the motion of PARSEC and the PJM Transmission owners, extending the Order No.1920 compliance deadline for transmission planning and cost allocation. The notice extends the Engagement Period for PARSEC’s negotiations with PJM Transmission Owners, and makes August 11, 2026 the deadline for both the PJM Transmission Owners’ Long-Term Regional Transmission Cost Allocation Methods filing and PJM’s remaining Long-Term Regional Transmission Planning Protocol revisions. The parties are also granted 45 days with FERC’s Dispute Resolution Service; the DRS will inform the Commission if the parties have agreed to use the service by July 13, 2026. 

PJM Show-Cause Order on Rehearing, Clarification, Compliance Filing, and Paper Hearing (EL25-49-000): 

On June 18, 2026, FERC issued an Order on Rehearing, Clarification, Compliance Filing, and Paper Hearing in the PJM 206 Show-Cause proceeding regarding co-located loads and behind-the-meter generation (BTMG). The Commission upholds the December 2025 Order finding PJM’s tariff lacking clear rules for co-location. The Commission also sustains changes to retail BTMG netting rules, but creates an exemption for certain cogeneration qualifying facilitates integrated with load such that load follows generation when tripped offline. The order also confirms a rate structure for three new transmission services approved, which will require PJM to file compliance within 60 days addressing implementation. The Commission also directs PJM transmission owners to file complementary tariff revisions. The new services will have a placeholder effective date pending final implementation details, with PJM proposing June 1, 2029 for full implementation. 

FERC Order Instituting a Proceeding Under FPA §206 on Large Load Interconnection (EL26-67-000): 

On June 18, 2026, FERC issued an order instituting a proceeding under Section 206 of the Federal Power Act against the PJM and PJM Transmission Owners regarding large load interconnections and co-location arrangements. The order finds PJMs tariff to lack clear definitions and provisions regarding procedures for “large loads.” PJM and transmission owners have 60 days (September 16, 2026, unless they seek an abeyance by August 3) to either: 1. Show cause why the tariff remains just and reasonable, or 2. Propose tariff revisions addressing the identified deficiencies. By July 18, 2026 (30 days), PJM must file an informational report on ensuring adequate generation for existing and new large loads. This action stems from the October 2025 Advanced Notice of Proposed Rulemaking, initiated by Secretary of Energy Wright; FERC issued similar show cause orders to the other FERC-jurisdictional RTOs and ISOs. 

FERC Tech Conference Exploring the Current State of PJM Governance (AD26-7) 

On July 2, 2026, FERC issued a second supplemental notice regarding the upcoming Technical Conference on PJM Governance. The notice set July 14, 2026 as the official deadline for pre-filed statements, outlined in greater detail the main discussion topics, and announced the official panelists. Panel 1 will focus on PJM Governance mechanics while panel 2 will focus on the stakeholder process. 

PJM in the News

• Utility Dive: PJM opposes waiver for $2B gas-fired plant in fast-track interconnection review 
• Factor This: Grid congestion cost PJM $1 billion in one month
• Heatmap News: PJM Just Shattered Its Peak Demand Record

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