PJM Board Outlines Plans to Integrate Large Loads in 2026

The PJM Board of Managers has outlined a series of actions PJM and its stakeholders plan to pursue in 2026 to address challenges associated with integrating large loads, such as data centers, into the regional electric grid while maintaining reliability and affordability for the approximately 67 million customers PJM serves.

The Board’s statement follows an accelerated stakeholder process that produced 12 proposals. The Board’s plan draws on concepts from several of those proposals.

The package of actions includes proposals that PJM plans to file with the Federal Energy Regulatory Commission, changes to policies and procedures that PJM can implement in the near term, and plans for continued stakeholder engagement on more complex issues.

According to the Board, the approach is intended to address the need for power generation that can be brought online quickly and to provide options for large load customers whose electricity use can be curtailed when system conditions require. The Board said these steps are also aimed at mitigating supply-and-demand imbalances that could affect grid reliability and wholesale prices.

Proposed actions identified by the Board include:

• Improvements to load forecasting and a greater role for states

• Opportunities for large new loads to supply their own generation or participate in a connect-and-manage framework with earlier curtailment

• A new, expedited interconnection track for state-sponsored generation projects

• Immediate initiation of a backstop generation procurement process for short-term reliability

• A review of PJM’s markets to evaluate how they support investment

“This decision is about how PJM integrates large new loads in a way that preserves reliability for customers while creating a predictable, transparent path for growth,” said David Mills, PJM Board Chair and Interim President and CEO. “This is not a yes/no to data centers. This is ‘How can we do this while keeping the lights on and recognizing the impact on consumers at the same time?’ We look forward to implementing, along with our stakeholders, these proposals to manage the phenomenal demand growth we are experiencing.”

The Board said it will seek additional stakeholder feedback before determining whether to extend the price floor and ceiling, known as a price collar, used in the last two auctions to future auctions. This consideration will take place in the context of a comprehensive market review planned for 2026.

The Board’s decision was informed by analyses presented during the Critical Issue Fast Path for Large Loads process in the second half of 2025. While stakeholders did not reach consensus on a single proposal, the Board said the analytical work contributed to the development of its overall plan.

“PJM is establishing clear, transparent guardrails for integrating large new loads under defined conditions,” said Stu Bresler, PJM Chief Operating Officer. “This proposed course of action will require intense work by all of us in 2026 and involve significant changes, but it’s clear that bold action will be required to support the positive growth that is happening throughout the PJM region and the nation.”

PJM Interconnection coordinates the operation and planning of the high-voltage electric grid serving parts of 13 states and the District of Columbia.