{"document":{"slug":"filing-20260903-5206","title":"Comments of the Pennsylvania Public Utility Commission to the Proposal of PJM Interconnection, L.L.C. to establish Interim Resource Adequacy Service and Large Load Registry to address System Reliability","issued":"2026-09-03","accession":"20260903-5206","docket":"ER26-3515-000","group":"PJM filings","filer":"Pennsylvania Public Utility Commission","kind":"comments","file":"sources/originals/20260903-5206_01.pdf","url":"https://elibrary.ferc.gov/eLibrary/filelist?accession_Number=20260903-5206","sha256":"a4c0d5023283667f5280b153113dcfdd77b223354be442f8001157b266e3ac50","pages":10,"tokens":2210,"emptyPages":[]},"pages":[{"page":1,"startToken":0,"endToken":144,"text":"COMMONWEALTH OF PENNSYLVANIA  \n  \n  \nPENNSYLVANIA PUBLIC UTILITY COMMISSION \nCOMMONWEALTH KEYSTONE BUILDING  \n400 NORTH STREET, THIRD FLOOR \n  \nHARRISBURG, PENNSYLVANIA 17120  \n  \nSeptember 3, 2026 \n  \nVia Electronic Filing  \n  \nHonorable Debbie-Anne A. Reese, Secretary  \nFederal Energy Regulatory Commission  \n888 First Street, N.E.  \nWashington, D.C.  20426  \n  \n  \nRe:  \nComments of the Pennsylvania Public Utility Commission; PJM \nInterconnection, L.L.C., Docket No. ER26-3515-000 \n  \nDear Secretary Reese:  \n  \nPlease find for e-filing the Pennsylvania Public Utility Commission’s Comments \nfor the above-referenced PJM Interconnection L.L.C. proceeding at Docket No. ER26-\n3515. \n \nCopies of this document have been served upon all parties designated on the \nCommission’s official service list, in accordance with Rule 2010 of the Commission’s \nRules of Practice and Procedure.  \n  \nIf you have any questions, please do not hesitate to contact me.  \n   \nRespectfully submitted,  \n  \nElizabeth H. Barnes \nElizabeth H. Barnes  \nDeputy Chief Counsel   \nPennsylvania Public Utility  \nCommission   \n(717)772-5408"},{"page":2,"startToken":144,"endToken":365,"text":"1 \n \nUNITED STATES OF AMERICA \nBEFORE THE \nFEDERAL ENERGY REGULATORY COMMISSION \n \n \nPJM Interconnection, L.L.C. \n) \nDocket No. ER26-3515-000 \n \n \n \nCOMMENTS OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION \n \nThe Pennsylvania Public Utility Commission (PA PUC) submits these comments \nto the Proposal of PJM Interconnection, L.L.C.’s (PJM) to Establish Interim Resource \nAdequacy Service and Large Load Registry to Address System Reliability (IRAS).1  PA \nPUC supports the creation and maintenance of a New Large Load (NLL) Registry and \nsuggests improvements to the Registry.  However, PA PUC objects to the proposed, red-\nlined tariffed language at PJM’s Transmittal Appendix A at page 105 - X (Compensation \nfor Providing Interim Resource Adequacy Service), which conflicts with averments in \nPJM’s Transmittal Letter at pages 106-107.  The curtailment protocol in the proposed \nAppendix A Tariff amendment was not developed with PA PUC’s input, and it appears to \nimpinge upon our jurisdiction over retail rates.    PA PUC is concerned that PJM is \nplacing a burden upon Electric Distributors, including Pennsylvania electric distribution \ncompanies (EDCs) and electric generation suppliers (EGSs) to bear responsibility to \nimplement a compensation scheme for a retail customer class of NLLs that provide the \n \n1 PJM Interconnection L.L.C., Proposal to Establish Interim Resource Adequacy Service and a Large \nLoad Registry to Address System Reliability, Docket No. ER26-3515-000 (August 13, 2026) (“IRAS \nFiling”)."},{"page":3,"startToken":365,"endToken":646,"text":"2 \n \nIRAS load reduction service allowing the NLL to determine its percentage of \ncompensation without consideration as to the entities or persons responsible for bearing \nthe cost of compensation at a retail level and without express state commission oversight.  \nThe PA PUC has significant concerns that PJM’s representations that the IRAS \ncurtailment compensation framework honors state retail authority, as set forth in its \nsupporting transmittal materials, are irreconcilable with the plain language of the \noperative tariff provisions offered in the filing.  Specifically, PJM claims that the IRAS \nframework  is “intentionally designed to avoid conflicts with state authority and regimes \nby leaving load reduction plans and retail cost allocation to state-level entities, while \noffering non-mandatory options under the federal tariff to aid collection and settlement of \ncompensation for IRAS.”2  However, as explained more thoroughly below, the actual \ntariff language fails to provide states with any authority to protect its jurisdictional \nratepayers from paying curtailment compensation costs controlled by NLLs.  To be sure, \nPJM’s proposed tariff explicitly provides for any Eligible New Large Load to “accept in \nits retail rates a sum less than 50% of the Non-Performance Charge Rate. . . .”3 Under the \ntariff as it is proposed now, retail ratemaking authority would be inappropriately and \nunlawfully abdicated to NLLs.  PJM’s filing appears to acknowledge that its proposal \ncrosses over the threshold of wholesale rates and veers into state retail rates, as PJM \nindicates that the IRAS rate is “is intended to be conjoined with retail rates. . . .”4     \nThe PA PUC objects to the proposed infringement upon its retail ratemaking authority. \n \n2 IRAS Filing at 3. \n3 See proposed Tariff, Attachment DD-4, section X(a). \n4 IRAS filing at 104 (emphasis added)."},{"page":4,"startToken":646,"endToken":966,"text":"3 \n \n \nI. \nCompensation for Load Reduction Under IRAS \n \nPJM proposes a compensation mechanism for NLLs that provide a load reduction \nservice, i.e. curtailment, which creates new obligations for Electric Distributors.  PJM’s \nTransmittal Letter states that Electric Distributors bear the responsibility to implement \nthe compensation scheme for New Large Loads that provide the IRAS load reduction \nservice and PJM proposes to extend the rate applicable for Pre-Emergency Load \nResponse non-performance (and conversely for bonus payments) – 50% of the Non-\nPerformance Charge Rate as the maximum rate for IRAS performance.5  PJM’s proposal \nalso allows eligible NLLs to agree upon a retail rate between 50% of the Non-\nPerformance Charge Rate and zero dollars, to “further facilitate implementation of the \nRatepayer Protection Pledge and retail level arrangements.”6  There is an opportunity for \nNLLs to waive this compensation, and PJM also claims that there are ways that states \nmay be able to modify this compensation at the retail level.  \nIn its Transmittal Letter, PJM states in pertinent part: \nThe program will be administered by the Electric Distributor in coordination with \nthe relevant state authorities or RERRA.  That said, PJM’s proposal imposes no \nobligation on any state to do anything. States are free to design retail rate regimes \nthat facilitate the recovery and allocation of wholesale IRAS rates through generally \napplicable retail rate tariffs.  Alternatively, if states decline to act generically, they \ncould negotiate specific retail filed rates with affected entities.  Further still, if states \ndecline to act,  Eligible New Large Loads could initiate regulatory proceedings to \ndevelop retail pathways to recover wholesale IRAS rates.  Or, if states decline to \nact and Eligible New Large Loads decline to initiate regulatory proceedings to \nrecover through retail rates the wholesale IRAS rate, they would effectively waive \na right to compensation.  Under PJM’s proposal, the wholesale rate can flow into \n \n5 See Transmittal Letter at 102. \n6 See proposed Tariff, Attachment DD-4, section X(a)."},{"page":5,"startToken":966,"endToken":1264,"text":"4 \n \nretail rates outside the PJM settlements realm.  Alternatively, Electric Distributors, \nin consultation with their state regulators, can request PJM’s support in \nimplementing payment of the wholesale rate to Eligible New Large Loads and/or \ncollection of charges to fund such compensation.  Other potential flexibility might \nexist.  The key takeaway is that PJM is not mandating any action at the retail or \nstate level.7 \n \nHowever, PJM’s claims do not comport with its proposed tariff changes in Appendix \nA and B to its Transmittal Letter prescribing different compensation rules.  The redlines \nfor Tariff section X identify EDC compensation obligations and collection thereof \nthrough retail rates paid by jurisdictional customers.8  The tariff does not expressly \nrecognize state authority to prohibit, approve, or modify such compensation and \njurisdictional recovery, as its plain language does not prescribe any role for state utility \nregulators to challenge or reject the degree of compensation that NLLs are willing to \naccept.  The end result appears to be that States must accept and enforce in retail rates a \ncompensation level chosen by the NLL without any additional requirement that the NLL \nshow evidence of actual curtailment, i.e. a validation step.  Under this scheme, the NLL \nfunctions as a retail rate regulator that sets its own curtailment compensation rates up to a \nmaximum threshold of 50% of the Non-Performance Charge Rate. Aside from the clear \nretail rate consequences that state regulators could be powerless to prevent, states would \nnot be empowered to ensure that the rate was justified under the tariff.  State \nCommissions considering retail consequences may need to understand not merely that a \nLarge Load participated in an IRAS arrangement, but what evidence supports the \n \n7 Transmittal Letter at 106-107 (footnotes omitted). \n8 See proposed Tariff, Attachment DD-4, section X (Appendix A at 105)."},{"page":6,"startToken":1264,"endToken":1524,"text":"5 \n \nquantity for which compensation is claimed but no mechanism for confirmation appears \nto be contemplated.   \n \nAlthough PJM asserts that the proposed framework “avoids the potential for \nconflicts with state policy determinations and jurisdictional domains”9 this claim too does \nnot bear out in the proposed tariff language.  Instead, as it is currently set forth in the \nproposed tariff, adoption of PJM’s curtailment compensation proposal would impede \nstates’ ability to enforce any NLL’s commitment to protect ratepayers from the costs that  \nthe NLL is causing.  Additionally, PJM’s curtailment compensation rate acts as an \nobstacle for states that wish to enact legislation or propose policies to protect ratepayers \nfrom paying any costs associated with data centers.  As an example, in Pennsylvania, \nGovernor Josh Shapiro signed Executive Order 2026-05 on August 18, 2026.  This \nExecutive Order, inter alia, seeks to limit electric system costs caused by data centers \nfrom being imposed upon other customers.10  The curtailment compensation payments \nprescribed in IRAS are antithetical to limiting costs caused by data centers.  As currently \nproposed, PJM’s  tariff appears to require state utility regulators to pass through NLL’s \ndetermined compensation amount, thereby imposing costs upon jurisdictional ratepayers \nto compensate data centers for the curtailment needs they are causing—and without \nrecourse.  To the extent that this is not the outcome PJM intended, the plain language of \nits proposed tariff is squarely at odds with providing state utility regulators oversight over \nretail rates.  \n \n9 IRAS filing at 107. \n10  Pa. Executive Order 2026-05, Protecting Pennsylvania Consumers from Data Center Impacts, ¶3(b) (Aug. 18, \n2026),"},{"page":7,"startToken":1524,"endToken":1852,"text":"6 \n \nAs currently written, PJM’s proposed Tariff amendment language is unjust and \nunreasonable in that it infers the State’s role is to rubber-stamp a seemingly pass-through \nmechanism for compensation determined by an LLC from an Electric Distributor, the \ncosts for which may ultimately be borne state jurisdictional customers.  As written, the \nlanguage of PJM’s tariff does not contemplate application of state regulatory authority to \neither prohibit or determine NLL curtailment compensation as necessary to regulate \nrecovery through retail rates.  PA PUC requests this provision at X (Compensation for \nProviding Interim Resource Adequacy Service) on page 105 of PJM’s Transmittal \nLetter’s Appendix A be denied, severed, or stricken altogether from the proposed Tariff \nas unjust and unreasonable.  In the alternative,  and without waiving that position, PA \nPUC offers the following suggested language for consideration as just and reasonable.  \nX. \nCOMPENSATION FOR PROVIDING INTERIM RESOURCE \n \nADEQUACY SERVICE \n \n(a) \nThe rate for the provision of Interim Resource Adequacy Service shall be 0% \nof the Non-Performance Charge Rate specified in Tariff, Attachment DD, \nsection 10A(e), unless any State Utility Regulator elects to permit in its \njurisdictional retail rates a sum greater than 0% but not more than 50% of \nthe Non-Performance Charge Rate as compensation for the New Large \nLoad’s provision of wholesale Interim Resource Adequacy Service. \n \n(b) \nIf a state utility regulator elects to permit recovery of compensation through \nretail rates as provided above, following an Interim Resource Adequacy \nEvent, unless the Electric Distributor informs the Office of the \nInterconnection otherwise in accordance with Tariff, Attachment DD-4, \nsection X(b)(ii), the Electric Distributor shall be responsible for \ncompensating all Eligible New Large Loads that provided Interim Resource \nAdequacy Service for up to the amount of such service provided. The \nElectric Distributor shall be responsible for charging customers in its \nzone/area to fund any such compensation in accordance with applicable \nstate law and state regulatory authority. \n \n(c) \nNothing in this Tariff, Attachment DD-4, section X shall interfere with any"},{"page":8,"startToken":1852,"endToken":2083,"text":"7 \n \nState Utility Regulator’s election to deny New Large Loads any level of \ncompensation for the provision of wholesale Interim Resource Adequacy \nService, or (ii) to establish jurisdictional retail rates in accordance with \napplicable state law and regulatory requirements.  \n \nII. \nLarge Load Registry  \n \nPA PUC supports PJM’s proposed Large Load Registry and requests that it be \nimproved to enable authorized users to compute compensation.  Data regarding \nrepresented curtailment capability during pre-emergency phase capabilities versus \ncapability actually observed and evidenced can assist in quantifying amounts for \ncomputation of compensation.  PA PUC supports appropriate confidentiality protections, \nbut in the event PA PUC will be determining how curtailment should be implemented at \nthe retail level and how costs of curtailment if any should be allocated, state utility \ncommissions should have access to the Registry and curtailment data should be provided \nin the Registry.  \nIII. \nConclusion \nFor these aforementioned reasons, the PA PUC objects to portions of PJM’s tariff \nfiling, specifically to the Proposed IRAS Compensation Rate.  We respectfully request \nthe Commission sever and deny the changes to PJM’s tariff regarding the Proposed IRAS \nCompensation Rate; or, in the alternative, adopt the proposed language offered by the PA \nPUC herein.  Additionally, we request a modification of the proposed New Large Load \nRegistry.  Otherwise, the PA PUC  supports the PJM filing and the allowance of other \ncomponents of the proposal to go into effect as requested."},{"page":9,"startToken":2083,"endToken":2124,"text":"8 \n \nRespectfully submitted, \n \n/s/ Elizabeth H. Barnes \nElizabeth H. Barnes, Deputy Chief Counsel \nPennsylvania Public Utility Commission \n400 North St., 3rd Floor \nHarrisburg, PA 17120 \nTelephone: 717-772-5408 \nebarnes@pa.gov \n \nCounsel for the Pennsylvania Public Utility Commission \n \n \nDated: September 3, 2026"},{"page":10,"startToken":2124,"endToken":2210,"text":"9 \n \nCERTIFICATE OF SERVICE  \nI HEREBY CERTIFY that I am on this date serving a copy of the foregoing document \nupon each person designated on the official service list compiled by the Secretary of the \nFederal Energy Regulatory Commission in accordance with the requirements of Rule \n2010 of the Commission’s Rules of Practice and Procedure.  \n   \nRespectfully submitted,  \n \n/s/ Elizabeth H. Barnes \nElizabeth H. Barnes  \nDeputy Chief Counsel  \nPennsylvania Public Utility Commission  \n400 North St., 3rd Floor \nHarrisburg, PA  17120  \nTel: (717) 787-5000  \n  \nDated:  September 3, 2026"}],"sections":[{"p":1,"at":0,"title":"Opening text","method":"opening text","endPage":4,"endAt":7,"startToken":0,"endToken":647},{"p":4,"at":7,"title":"I. Compensation for Load Reduction Under IRAS","method":"printed heading","endPage":7,"endAt":957,"startToken":647,"endToken":1661},{"p":7,"at":957,"title":"X. COMPENSATION FOR PROVIDING INTERIM RESOURCE","method":"printed heading","endPage":8,"endAt":281,"startToken":1661,"endToken":1891},{"p":8,"at":281,"title":"II. Large Load Registry","method":"printed heading","endPage":8,"endAt":999,"startToken":1891,"endToken":1992},{"p":8,"at":999,"title":"III. Conclusion","method":"printed heading","endPage":8,"endAt":1005,"startToken":1992,"endToken":1993},{"p":8,"at":1005,"title":"Conclusion","method":"printed heading","endPage":10,"endAt":5,"startToken":1993,"endToken":2125},{"p":10,"at":5,"title":"CERTIFICATE OF SERVICE","method":"printed heading","endPage":10,"endAt":588,"startToken":2125,"endToken":2210}]}