The PJM region has been proactive in addressing electricity capacity constraints through an expanded set of regulatory reforms and direct political intervention. PJM has proposed several key initiatives to FERC, while political leaders like Pennsylvania Governor Shapiro have taken direct action to protect consumers from rising energy prices.

Shapiro, for example, secured a temporary price collar of $325/MW-day cap and $175/MW-day floor for PJM Interconnection capacity auctions covering the 2026/27 and 2027/28 delivery years. Now, PJM has proposed two key initiatives to FERC: an expedited interconnection track and an extension of the price collar for the 2028/29 and 2029/30 delivery years. The urgency and scope of these proposals underscore the magnitude of the capacity challenge facing the grid and could establish a model for how other regional operators navigate unprecedented demand growth.

Expedited Interconnection Track

Under the proposed fast-track, PJM would annually consider up to 10 interconnection requests for new or uprated capacity resources of at least 250 MW. All proposals must be backed by a pledge from a state’s primary siting authority, demonstrating support for fast-tracking projects to come online within there years.

PJM estimates a 10-month timeline from the time an expedited interconnection request is filed until a generation interconnection agreement is issued. FERC has been requested to approve the proposal by May 28th so PJM can begin the program on July 31st, which would sunset at the end of 2027.

By accelerating the addition of new capacity, PJM aims to help address resource adequacy challenges and improve grid reliability in the face of growing electricity demand.

Price Collar Extension  

To manage price volatility and ensure market stability, PJM submitted a recent proposal to FERC requesting an extension of the capacity auction price collar, the same price cap and floor as the Shapiro collar.

If successful, PJM’s coordinated approach combining expedited interconnection processes, price stability mechanisms, and state partnership, could serve as a blueprint for other ISOs grappling with similar demand pressures from data centers and electrification. The coming months will reveal whether these measures can bridge the gap between surging electricity needs and the grids’ ability to expand capacity quickly enough to meet them.