PJM Interconnection is launching an accelerated stakeholder process to tackle resource adequacy challenges driven by unprecedented load growth from data centers.
In an Aug. 8 letter to stakeholders, PJM Board of Managers Chair David E. Mills said the regional transmission organization’s latest forecast projects a peak load increase of 32 GW between 2024 and 2030, with roughly 30 GW of that growth coming from data centers alone.
While PJM’s location, market opportunities, and reliability make it an attractive region for large load customers, Mills noted the influx is creating “significant upward pricing pressure” and tightening capacity margins. “Finding solutions to the potential resource adequacy challenges posed by rapidly interconnecting large loads should be one of PJM’s highest priorities,” he wrote.
To move quickly, PJM will use its Critical Issue Fast Path (CIFP) process, aiming for a Federal Energy Regulatory Commission (FERC) filing in December 2025. The initiative will focus on five areas:
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Resource adequacy solutions to integrate large loads without compromising reliability, potentially using market-based tools such as demand response or customer-supplied generation.
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Reliability criteria to define when such measures would be triggered or phased out.
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Interconnection rule adjustments to address large load impacts on capacity.
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Coordination among PJM, states, utilities, and large-load customers.
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Timing to implement solutions in time for the 2028/2029 Base Residual Auction.
The CIFP effort builds on PJM’s May 2025 large load addition workshop and comes amid a broader push to process a backlog of new generation projects. PJM said it has cleared 140,000 MW in its interconnection queue since reforms began in 2022, with 46,000 MW already holding signed agreements, though some projects face siting, permitting, and supply chain delays.
An initial pre-CIFP workshop is scheduled for Aug. 18 to gather stakeholder feedback on the proposed scope before formal discussions begin.
