PJM proposes backstop process to support power grid reliability

PJM's Board of Managers outlined actions for 2026 to integrate new large loads while preserving reliability and affordability for the 67 million people it serves, including an immediate backstop generation procurement process and a broader market review that will inform possible changes to the recent price floor and ceiling.

PJM's Board of Managers outlined actions for 2026 to address the challenges of integrating data centers and other large load customers onto its grid. The Board emphasized preserving electricity system reliability and affordability for the 67 million people PJM serves. The plan combines proposals the Board may file with the Federal Energy Regulatory Commission, immediate changes to PJM policies and procedures, and stakeholder processes to inform complex decisions. The Board also proposed specific programs such as a backstop generation procurement process and a market review. Key proposals: - Significant load forecasting improvements and a greater role for states. - Avenues for new large loads to bring their own generation or to enter a connect-and-manage framework that could include earlier curtailment. - Creation of an accelerated interconnection track for state-sponsored generation projects. - Immediate initiation of a backstop generation procurement process to address short-term reliability needs. - A review of PJM markets to assess how they can work together to support investment, with stakeholder feedback to inform any decision on extending the recent price floor and ceiling (the "price collar"). - The article mentions publicly traded companies active in the electricity sector, including Vistra, Constellation Energy and NRG Energy. Summary: The Board's proposals are aimed at managing growing large-load demand while maintaining system reliability and affordability. PJM staff will conduct a holistic market review in 2026 and the Board will seek additional stakeholder feedback before deciding whether to extend the recent price collar. The immediate backstop procurement is reported as intended to address short-term reliability needs. Filings to FERC and further stakeholder input are the next procedural steps.