PJM Interconnection has filed two proposals with the Federal Energy Regulatory Commission (FERC) aimed at stabilizing its capacity market and accelerating new generation development as electricity demand rises across its footprint, driven largely by rapid growth in data center load. The filings are part of PJM’s broader strategy to address tightening reserve margins and maintain reliability while longer-term market reforms are considered.
The first proposal would extend PJM’s temporary capacity market price collar for two additional delivery years, covering the 2028/2029 and 2029/2030 auctions. The mechanism sets a floor and ceiling on capacity prices—approximately $175/MW-day and $325/MW-day—to limit extreme price swings. PJM says the extension would provide greater market certainty for generators and load-serving entities while broader structural changes to the capacity market are evaluated.
In a second filing, PJM proposed creating an Expedited Interconnection Track to accelerate the development of large, ready-to-build generation resources. Projects must provide at least 250 MW of accredited capacity, demonstrate full site control and regulatory support, and commit to reaching commercial operation within three years. PJM would study qualifying projects in a streamlined process lasting roughly 10 months and limit participation to about 10 projects per year over the next two years.
Together, the proposals are intended to address PJM’s near-term reliability challenges by stabilizing market signals and speeding the addition of new supply as demand surges. The initiatives complement other PJM efforts under development, including potential reliability backstop procurements and new frameworks for managing large-load interconnections tied to data center expansion.