VALLEY FORGE, PA — The board governing the nation’s largest electric grid operator has unveiled a sweeping plan to manage a rapid influx of power-hungry data centers and other large customers, warning that unchecked growth could strain reliability and drive up electricity costs for millions of consumers.
The Board of Managers of PJM Interconnection said the actions, targeted for implementation in 2026, are designed to balance accelerating demand with the need to keep the lights on and power affordable for the roughly 67 million people served across 13 states and the District of Columbia.
The decision follows an accelerated stakeholder process that generated 12 proposals addressing how PJM should handle large new loads seeking to connect to the grid. While stakeholders did not reach consensus, board members said the depth of analysis informed a comprehensive approach that draws from multiple ideas.
“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 chief executive officer. “This is not a yes or 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.”
The plan includes proposals to be filed directly with the Federal Energy Regulatory Commission, internal policy changes that PJM can implement immediately, and new stakeholder processes to tackle longer-term market and reliability questions.
Among the steps outlined by the board are major improvements to load forecasting with a greater role for states, new pathways allowing large customers to bring their own power generation or accept curtailment during system stress, and the creation of an accelerated interconnection track for state-sponsored generation projects. PJM also plans to immediately launch a backstop generation procurement process to address near-term reliability risks and to review how its markets can better work together to support investment.
Board members said the actions are aimed at easing a growing imbalance between electricity supply and demand, a dynamic they warned is already contributing to higher wholesale prices that can flow through to customer bills.
The board will also seek further stakeholder input before deciding whether to extend a price floor and ceiling — known as a price collar — for upcoming capacity auctions in the 2028-29 and 2029-30 delivery years. The move comes as PJM staff prepares a broader market review in 2026.
The initiatives stem from the Critical Issue Fast Path for Large Loads process conducted in the second half of 2025, which examined the challenges posed by data centers and other energy-intensive facilities seeking rapid grid access. In a letter accompanying the decision, the board described several of the actions as interim measures until supply-demand balance and reserve margins improve.
PJM officials said engagement with regulators, policymakers and stakeholders will continue as details are refined and demand growth evolves.
“PJM is establishing clear, transparent guardrails for integrating large new loads under defined conditions,” said Stu Bresler, PJM’s 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.”
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