PJM Interconnection Plans Auction to Tackle Capacity Shortfall The PJM Interconnection has proposed a unique reliability backstop auction scheduled for this fall to address an existing capacity shortfall. The proposal was formally submitted to the Federal Energy Regulatory Commission on July 31, 2026. A significant factor contributing to the current deficit of 6.8 gigawatts, identified

PJM Addresses Capacity Shortfall with Selection of 51 Power Projects The PJM Interconnection, a key organization responsible for coordinating electricity transmission across the Mid-Atlantic region, is confronting a growing capacity shortage. Rising electricity demand, coupled with the retirement of existing power plants, has created a significant strain on the region's power infrastructure. To proactively address this shortfall, PJM has implemented a special initiative, utilizing a "Reliability Pricing Model," designed to quickly secure power-generating capabilities. This initiative has resulted in the selection of 51 diverse power projects intended to bolster electricity supply in the near term. The "Reliability Pricing Model" incentivizes projects based on their ability to rapidly and reliably deliver power, which may lead to increased costs for consumers. The chosen projects encompass a variety of energy sources and project types, including natural gas power plants, solar installations, upgrades to nuclear power facilities, coal-based projects, battery storage systems, and wind projects. The capacity provided by each project is detailed, with notations on fuel source and project type. The reliance on natural gas as a primary fuel source for a substantial portion of these projects has sparked concerns regarding price volatility and potential environmental consequences. PJM has also received public criticism related to the rising electricity costs associated with this rapid response approach. This situation highlights the importance of forward-looking energy planning and strategic investment in a broad spectrum of energy resources to ensure grid stability and affordability.

Commissioner Pinocchi pressed staff on language in the IRP that indicates a winter shortfall of roughly 23 MW rising to nearly 200 MW, and asked whether contracted data centers or availability of a 370 MW coal‑strip resource could fill that gap; staff said model issues make the shortfall unclear and that these questions exceed today's minimum‑filing review.

ChalkPoint witness referenced PJM auction clearing that showed a UCAP shortage, acknowledging PJM's separate filing with FERC but saying that the shortfall is a useful signal rather than a sole justification for approving contract prices.

PJM Faces Capacity Shortfall, Anticipates FERC Filing The PJM Interconnection, which coordinates wholesale electricity markets across thirteen states and the District of Columbia serving over sixty-seven million people, is actively addressing a capacity shortfall that threatens reliability and could increase consumer costs. The situation stems from rapidly increasing demand, driven primarily by a surge in

A White House proposal for an emergency auction in the PJM region, intended to require data centers to pay for new power plants, is unlikely to resolve the underlying structural issues facing the region. This is according to a recent report by Aurora Energy Research, which analyzes the proposed auction structure and predicts it will

The PJM Interconnection region, spanning Pennsylvania, Maryland, and New Jersey, is facing an impending electricity capacity shortfall as rapidly growing demand outstrips the addition of new generating capacity. Projected by 2040, the shortage could be alleviated through emergency measures such as extending operational lifespans of existing power plants and invoking Section 202(c) authority, but this comes at a cost, driving up electricity prices for consumers in the region. A complex web of factors, including policy barriers, permitting delays, and shifting energy landscape, has led to criticism from stakeholders like Advanced Energy United and Governor Josh Shapiro's concerns to FERC, underscoring the need for both short-term solutions to maintain power supply and longer-term reforms to expedite integration of new renewable energy sources.