ER26-3515-000 · 2026-10-09 · FERC

Order accepting PJM's Large Load definition and Large Load Registry and rejecting the Interim Resource Adequacy Service, BYONC and VRR-curve revisions

Read topic-matched comments in ER26-3515

Topics in the text: Registry access · Reliability and curtailment · Retail and wholesale authority

What the document says

PDF p. 11

FERC accepts a 50 MW cumulative-peak threshold as the Large Load definition.

establishing the threshold to qualify as a Large Load at a cumulative peak of 50 MW strikes a just and reasonable balance between capturing the larger loads into which PJM needs visibility to ensure the reliability of its system PDF p. 11

PDF p. 20

FERC accepts the Large Load Registry and severs it from the rest of the filing.

We find that PJM’s proposed Large Load Registry is just and reasonable and not unduly discriminatory or preferential because it will require LSEs to provide information about the Large Loads that they serve to PJM PDF p. 20
Filed comments: Registry access

PDF p. 6

FERC accepts the Large Load Registry and severs it from the rest of the filing.

the only elements of its proposal that are severable are the proposed definition of Large Load and the proposed Large Load Registry, which can be implemented independent of the IRAS and BYONC frameworks. PDF p. 6
Filed comments: Registry access

PDF p. 34

FERC rejects IRAS because it appears to intrude on retail rate regulation.

certain aspects of PJM’s proposal appear to present an impermissible intrusion on retail rate regulation and are not subject to the Commission’s authority pursuant to section 205 PDF p. 34
Filed comments: Retail and wholesale authority

PDF p. 36

The tariff text, unlike PJM's transmittal, puts curtailment duties directly on retail large loads.

the plain language of the Tariff, as proposed, appears to place obligations directly on the Eligible New Large Loads and requires Electric Distributors to curtail the Eligible New Large Loads. PDF p. 36

PDF p. 36

FERC finds IRAS compensation sets a retail rate, which only states may do.

the proposed Tariff appears to be setting a retail rate because it establishes a compensation rate for IRAS payable to the Eligible New Large Load. PDF p. 36
Filed comments: Retail and wholesale authority

PDF p. 42

FERC says PJM did not justify treating utilities differently based on retail customer traits.

PJM’s proposal imposes capacity procurement and curtailment obligations on Electric Distributors and LSEs taking NITS to serve certain loads based on retail customer characteristics PDF p. 42
Filed comments: Reliability and curtailment

PDF p. 42

FERC says PJM did not justify treating utilities differently based on retail customer traits.

PJM’s generic references to these retail customer characteristics without more detail are insufficient evidence PDF p. 42

PDF p. 45

FERC rejects the BYONC accreditation lock-in for lack of record support.

PJM has not sufficiently justified its proposal to lock in the accreditation of BYONC resources over the lifetime of the BYONC arrangement PDF p. 45

PDF p. 47

FERC rejects the BYONC accreditation lock-in for lack of record support.

the risk that a BYONC resource’s locked-in accreditation value be higher than the capacity that it can actually provide has the potential to create a new resource adequacy risk for the entire PJM Region PDF p. 47
Filed comments: Reliability and curtailment

PDF p. 6

FERC rejects excluding new large loads from the VRR curve as inseparable from IRAS.

the proposed rules for BYONC arrangements and the exclusion of Eligible New Large Loads from the VRR curve, are not simply complementary, but instead are inextricably linked. PDF p. 6

PDF p. 6

FERC grants that PJM faces a capacity shortfall but says the proposal falls short.

we recognize the imminent capacity shortfall in PJM, we find that two key aspects of PJM’s proposal—IRAS and BYONC—are either outside of the Commission’s authority or have not been sufficiently demonstrated PDF p. 6

PDF p. 1

FERC grants that PJM faces a capacity shortfall but says the proposal falls short.

beginning in the 2027/2028 Delivery Year, it will be short of sufficient capacity to meet the PJM Region Reliability Requirement, particularly due to data center load growth PDF p. 1

PDF p. 48

FERC warns IRAS would shed firm load at EEA1, earlier than the reliability standard allows.

PJM’s proposal would shed firm load on an involuntary basis. PDF p. 48

PDF p. 48

FERC warns IRAS would shed firm load at EEA1, earlier than the reliability standard allows.

It appears that PJM’s proposal ignores the plain language of mandatory Reliability Standard EOP-011-4 PDF p. 48

PDF p. 48

FERC doubts load excluded from the VRR curve should pay capacity charges.

Eligible Customers taking non-firm transmission service on behalf of co-located load should not be charged for capacity because PJM does not procure capacity on their behalf. PDF p. 48

PDF p. 12

FERC keeps manufacturers in the Large Load definition, not just data centers.

we find reasonable PJM’s proposal to include all types of large loads in the Large Load definition. PDF p. 12

PDF p. 12

FERC says one-mile single-site grouping stops data centers splitting into sub-50 MW pieces.

the one-mile radius paired with the single electrical site requirement is necessary to ensure that loads that are physically located together and affiliated are considered as a single facility PDF p. 12

PDF p. 12

FERC says a cutoff just below 50 MW is not unjust merely because it excludes loads.

any cutoff criterion would inevitably exclude loads sized just below the threshold, and that alone does not render the definition unjust or unreasonable. PDF p. 12

PDF p. 21

The Registry stays closed to state consumer advocates under existing confidentiality rules.

PJM proposes to follow its existing, Commission-approved rules, rules that currently do not allow state consumer advocates or similar entities to have access to this type of information. PDF p. 21
Filed comments: Registry access

PDF p. 21

LSEs must supply Registry data, and Electric Distributors may fill gaps.

the LSE serving a Large Load is obligated to provide PJM with the information for the Large Load Registry, and the Electric Distributor may provide information when the LSE does not have all the information required readily available. PDF p. 21
Filed comments: Registry access

PDF p. 13

FERC severs and rejects the New Large Load definition without prejudice.

we also sever and reject the definition of New Large Load without prejudice. PDF p. 13

PDF p. 49

FERC severs and rejects the New Large Load definition without prejudice.

a 49 MW existing load that increased its consumption by 1 MW would become a 50 MW New Large Load and impose new requirements on the existing NITS customer for the entire 50 MW. PDF p. 49

PDF p. 50

FERC points PJM toward a non-firm transmission service as a refiling route.

a non-firm transmission service similar to Non-Firm Contract Demand transmission service, with appropriate adjustments, might be considered as a potential avenue to achieve some of the aims of PJM’s proposed IRAS framework. PDF p. 50

PDF p. 43

FERC leaves it to states to pick which retail customers are curtailed first.

States have a crucial role to play in this challenge by designating which retail customers must be curtailed when the system is stressed PDF p. 43

PDF p. 56

Rosner: any refiled IRAS must justify curtailing load before voluntary demand response.

if PJM chooses to refile its proposal, it must justify its proposal to curtail IRAS load on a mandatory basis before load that has voluntarily enrolled in a demand response program. PDF p. 56

PDF p. 56

Rosner: excluding IRAS load from the demand curve could hide a capacity shortage.

The result could be a capacity market signaling that PJM has more than enough capacity while the region sheds thousands of megawatts of demand on an involuntary basis. PDF p. 56

PDF p. 57

Rosner: in an emergency, cut non-critical data centers before ordinary customers, after demand response.

data centers not serving critical functions should be shut off before ordinary customers PDF p. 57

PDF p. 1

Both accepted elements take effect October 12, 2026, with a compliance filing due in 30 days.

we accept PJM’s proposed Tariff revisions to establish a definition of Large Load and a Large Load Registry, effective October 12, 2026, as requested, and require PJM to submit a compliance filing within 30 days PDF p. 1
Filed comments: Registry access

Responses and related views

Who can see the customer-level data?

Office of the Ohio Consumers’ Counsel · Direct response

OCC sought rehearing of the October 9 order. It asked FERC to reject the registry unless PJM grants consumer advocates access under confidentiality agreements.

PDF p. 19

Existing generators may gain from the rejection

Jefferies analysts, quoted by Utility Dive · Direct response

Jefferies saw the rejection of interim service as favorable to existing independent generators. That was an analyst assessment of market effects, separate from the commission’s reasons for its decision.

Ethan Howland, October 12, analyst reaction

A longer wait for private deals

Mary Yang, 804 Advisory, interviewed by Latitude Media · Direct response

Yang, a former PJM regulatory counsel, expected other priorities to delay a rewrite. She said that uncertainty could slow bilateral arrangements between new loads and generators.

Maeve Allsup, October 13, interview with Mary Yang

Which customers should lose power first?

Commissioner David Rosner · Direct response

Rosner wanted voluntary demand response called first, followed by noncritical large loads before homes and other ordinary customers. He objected to keeping demand out of the capacity market forecast. His October concurrence predates the November compliance filing.

PDF pp. 55–57, Rosner concurrence

Source sections

Printed headings where available; page ranges otherwise. Excerpts below are selected from the text by keyword.

Opening text

opening text · Topic match: Registry access

In this order, we accept PJM’s proposed Tariff revisions to establish a definition of Large Load and a Large Load Registry, effective October 12, 2026, as requested, and require PJM to submit a compliance filing within 30 days of the date of issuance of this order.
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I. Filing Overview

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ER26-3515-000 - 2 - PJM proposes to establish and maintain; (3) IRAS, which PJM states will involve curtailments during periods when there are insufficient resources to reliably meet demand in real-time operations; (4) a requirement for LSEs serving New Large Load to designate new capacity…
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II. Notice of Filing and Responsive Pleadings

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On August 28, 2026, OPSI filed a motion requesting an extension of time to submit comments in response to PJM’s filing.
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III. Discussion

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III.
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Discussion

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Discussion
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A. Procedural Matters

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Pursuant to Rule 214(d) of the Commission’s Rules of Practice and Procedure, 18 C.F.R. § 385.214(d), we grant CyrusOne and Governor Shapiro’s late-filed motions to intervene given their interest in the proceeding, the early stage of the proceeding, and the absence of undue prejudice or delay.
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B. Substantive Matters

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Next, PJM proposes to develop a Large Load Registry to foster transparency regarding Large Load additions.
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1. Large Load Definition and Registry

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Large Load Definition and Registry
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a. Definition of Large Load

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a.
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i. PJM’s Proposal

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PJM proposes to define Large Load as: end-use customer(s) load that has a cumulative peak load of 50 [MW] or greater at a single electrical site behind one or more points of interconnection, where for configurations involving multiple affiliated load facilities or multiple points of interconnection…
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ii. Pleadings

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EKPC argues that PJM does not justify the 50 MW threshold and requests that the Commission should either require PJM to narrow the definitions or to establish objective criteria demonstrating that non-computational load presents the same IRAS-relevant risks.47 The IMM argues that the 50 MW…
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iii. Determination

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PJM explains that the term New Large Load is needed to describe the subset of Large Loads that PJM proposes may be subject to curtailment where the LSE does not designate capacity to offset the load.55 Given that we are rejecting these aspects of PJM’s proposal, as discussed below, we also sever…
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b. Large Load Registry

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Large Load Registry
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i. PJM’s Proposal

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PJM proposes to require LSEs to submit information to PJM about the Large Loads they serve, which PJM will maintain in a Large Load Registry.57 Specifically, PJM proposes revisions to Schedule 11 of the RAA to establish a registry of Large Loads in the PJM Region capturing existing Large Loads and…
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ii. Pleadings

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ER26-3515-000 - 18 - arguing entities with access are subject to onerous and insurmountable confidentiality restrictions.81 Joint Consumer Advocates and Ohio Consumers’ Counsel argue that PJM should allow state consumer advocates access to the Large Load Registry because the information will play a…
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iii. Determination

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PJM explains that the Large Load Registry will be available only to entities that already have access to this sort of information and consistent with existing confidentiality rules, i.e., PJM proposes to follow its existing, Commission-approved rules, rules that currently do not allow state…
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2. Interim Resource Adequacy Service Package

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Below, we find that elements of the package are outside of Operating Agreement] shall submit, or cause to be submitted, to [PJM] the following information, as may be further described in the PJM Manuals, related to each Large Load served by [the entity bound by the Operating Agreement].” Proposed…
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a. PJM’s Proposal

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Pilong explains that IRAS Actions would occur after PJM dispatchers have issued a NERC Energy Emergency Alert Level 1 (EEA1).109 PJM states that IRAS would be suspended 105 PJM explains that an IRAS Action is an “Operating Instruction, as defined by NERC.” Transmittal at 75 (citing Proposed OATT,…
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b. Jurisdiction

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b.
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i. PJM’s Filing

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PJM likewise argues that its compensation framework respects and reflects the federal and state division of authority.126 PJM asserts that the IRAS rate is compensation for a wholesale load reduction service.127 However, PJM also asserts that the rate is intended to be conjoined with retail rates…
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ii. Pleadings

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In its answer, Google asserts that when it comes to determining whether a rate is jurisdictionally permissible under the FPA, the dispositive question is how it works in practice, not the relevant public utility’s transmittal letter.162 Constellation and Data Center Coalition argue that the express…
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iii. Determination

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We find that certain aspects of PJM’s proposal appear to present an impermissible intrusion on retail rate regulation and are not subject to the Commission’s authority pursuant to section 205 of the FPA.174 We find that several provisions of the proposed Tariff appear to place obligations directly…
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c. Undue Discrimination – IRAS Curtailment

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Undue Discrimination – IRAS Curtailment
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i. PJM’s Filing

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Similarly, PJM points to the Southwest Power Pool, Inc. (SPP) Conditional High Impact Large Load Service (CHILLS) order, where the Commission found that the proposal for new large loads was just and reasonable and not unduly discriminatory or preferential.
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ii. Pleadings

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Constellation and the Data Center Coalition argue that PJM’s proposal unfairly creates a subclass of NITS customers—those serving Eligible New Large Loads—who pay the same transmission and capacity rates as other NITS customers but receive inferior service and are subject to involuntary curtailment…
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iii. Determination

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We find that PJM has not currently offered sufficiently detailed evidence concerning how its treatment of Electric Distributors and LSEs taking NITS differently in the resource adequacy context based on the characteristics of their retail customers is not unduly discriminatory.221 PJM’s proposal…
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d. BYONC Accreditation

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d.
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i. PJM’s Filing

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Only BYONC supported by a demand resource or distributed energy resource Capacity Aggregation Resource may be replaced during the 10-year commitment period, and it must be replaced by another eligible resource willing to fulfill the rest of the 10-year requirement.
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ii. Pleadings

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AMP requests that the Commission direct PJM to modify its proposal to set the level of BYONC for a generation or storage resource at the resource’s accredited capacity in the first year it is in arrangement with a New Large Load.229 AMP argues PJM expects the Effective Load Carrying Capability…
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iii. Determination

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We find that PJM has not sufficiently justified its proposal to lock in the accreditation of BYONC resources over the lifetime of the BYONC arrangement to be just and reasonable and not unduly discriminatory or preferential.
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e. Other Issues

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Should PJM choose to refile a modified version of its proposed IRAS framework that does not infringe on retail rate regulation, we encourage PJM to address the concerns discussed below. 107.
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Appendix

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Office of the Illinois Attorney General* Office of the Ohio Consumers’ Counsel (Ohio Consumers’ Counsel)* Ohio Energy Leadership Council (Ohio ELC)* Old Dominion Electric Cooperative (ODEC)* Organization of PJM States, Inc. (OPSI)^ Pennsylvania Office of Consumer Advocate Pennsylvania Public…
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Commissioner

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I write separately to emphasize that, if PJM chooses to refile its proposal, it must justify its proposal to curtail IRAS load on a mandatory basis before load that has voluntarily enrolled in a demand response program.
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