PJM files a revised capacity procurement plan
PJM resets the timetable for a capacity purchase
PJM Interconnection filed an amended Reliability Backstop Procurement proposal with federal regulators on October 29. The grid operator wants to begin a one-time procurement on Mar 1, 2027, to secure additional power capacity after recent auctions fell short of reliability targets. PJM describes the earlier shortfall as about 6,800 megawatts, a figure it says will be recalculated with updated load and resource information.
Federal regulators accepted much of PJM’s original proposal in September but suspended its implementation while reviewing cost allocation, credit requirements and what happens if a transmission owner exits. The amended filing revises those areas; it is still a proposal, not an approved procurement schedule.
How the proposal assigns costs
PJM proposes allocating charges to load-serving entities, regulated companies that buy or manage electricity supply for customers. The allocation would track firm large-load growth between each zone’s actual 2026 summer peak and its forecast for the 2028–29 delivery year. Local electric distributors would report the growth, and each zone’s share would reflect its contribution.
This is a proposed wholesale cost-allocation method, not a direct data-center bill or a forecast of household rates. The announcement does not settle how any costs might flow through state-regulated retail bills.
What capacity procurement buys
Capacity is a commitment that a resource will be available when needed; it is not the same as electricity already generated or consumed. Analogy: it is closer to reserving a seat than measuring how many trips were taken. PJM says the procurement could secure resources for up to 15 years, with a maximum willingness to pay based on a weighted average of $555 per megawatt-day.
The proposed bid window would close March 28, with a final target and supply amount set for April 28 and results posted May 10. PJM says qualifying bilateral contracts between large loads and suppliers would reduce the procurement target to avoid buying the same capacity twice.
The decision and the real-world supply remain open
FERC must decide whether the revisions address its concerns. The final target, any winning capacity offers, construction and delivery dates, and the effect on retail bills remain unknown. A procurement plan is a step toward contracting resources, not proof that new generation is operating.
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