PJM Sends Amended Emergency Auction Plan to FERC
The grid operator's revised proposal aims to close a nearly 7-GW supply gap for the 2028/29 delivery year.
Updated on Nov. 1, 2026 in Data Centers
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PJM has sent the Federal Energy Regulatory Commission an amended plan for an emergency capacity auction to close a nearly 7-GW supply gap for the 2028/29 delivery year. FERC previously accepted parts of the plan and delayed the auction start date until late February.
Why it matters
The amended plan responds to FERC's concerns, including the potential for data center cost-shifting onto ratepayers. Its revisions bear on how grid capacity costs are allocated across the United States as demand from new facilities grows.
PJM projects a supply gap of about 7 GW for the 2028/29 delivery year and will allocate costs using the latest load forecasts. Whether the amended plan fully resolves the gap depends on FERC's ruling, which the source does not address.
The players
PJM
PJM is the regional transmission organization that operates the electric grid across much of the mid-Atlantic and Midwest United States, and it is responsible for managing capacity auctions for its member utilities.
Federal Energy Regulatory Commission (FERC)
FERC is the independent U.S. federal agency that regulates interstate transmission of electricity and approves wholesale market rules, including PJM's capacity auction designs.
The details
FERC accepted parts of PJM's plan last month and rejected its proposal to curtail large loads that lack new capacity. PJM will divide auction costs according to the most recent load forecasts so that newer facilities pay their fair share, and it aims to kick off the amended auction in March.
Timeline
Last month (October 2026): FERC accepted parts of the plan and delayed the auction start date.
Late February 2027: Auction start date delayed to this period.
Thursday, October 29, 2026: PJM sent its amended plan to FERC.
March 2027: PJM aims to kick off the amended auction.
Roadmap
The amended plan builds on FERC's partial acceptance and rejection of PJM's earlier proposal in the ongoing effort to manage grid capacity as data center demand rises. It revises how capacity costs are shared to address FERC's concerns about cost-shifting onto ratepayers.
The amended plan's cost-allocation method could affect electricity bills for ratepayers, since costs will be divided based on the latest load forecasts. Households and businesses in the PJM region may see the effects through future capacity charges once the auction proceeds.
The takeaway
Grid capacity costs for new data centers are being reassigned to the facilities driving the demand, which may limit how much those costs fall on existing ratepayers. Watching FERC's ruling and the March auction will show how that allocation works in practice.
What happens next
PJM aims to kick off the amended emergency capacity auction in March 2027, after the start date was delayed to late February.
Further reading
For broader context on how data center demand is reshaping power planning, see Data Centers.
Source note: This article includes information reported by Energy Central.
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