Author: FERC Staff Published: 12/18/2025 MediaDL@ferc.gov
News Releases
Item E-1, Docket Nos. EL25-49-000, et al. | Presentation | Fact Sheet
Today, FERC directed grid operator PJM to establish transparent rules to facilitate service of AI-driven data centers and other large loads co-located with generating facilities. These rules will safeguard grid reliability and protect consumers in the mid-Atlantic territory, which serves over 67 million Americans in 13 states and D.C.
As technology leaps forward, clear and fair regulations must keep pace to support advancement, help prevent price volatility, and promote competition, ultimately benefiting consumers by keeping electricity costs manageable.
“Today’s order is a monumental step towards fortifying America’s national and economic security in the AI revolution, while ensuring we preserve just and reasonable rates for all Americans. I look forward to tackling more of these critical national issues with my colleagues in the New Year,” said Chairman Laura Swett.
In the order, the Commission finds PJM’s tariff unjust and unreasonable due to a lack of clarity and consistency in the rates, terms, and conditions that apply to interconnection customers serving co-located load and eligible customers taking transmission service on behalf of co-located loads.
PJM’s tariff is unreasonable because it does not account for transmission services where eligible customers can manage energy withdrawals for co-located load. FERC directs PJM to revise its tariff to require its eligible (transmission) customers serving co-located load to choose from several transmission service options.
“Clarifying new rules will help release the bottleneck of large load investments across the PJM footprint,” said Chairman Swett.
FERC also directs PJM to report, by January 19, 2026, on the status of its proposals to speed up the addition of generating capacity, including:
- Expedited interconnection process for shovel-ready projects,
- Changes to PJM’s reliability backstop mechanism for resource shortfalls, and
- Enhanced load forecasting and demand flexibility measures to identify new capacity needed for system reliability.
For more information on the order, see related Fact Sheet.
The Commission’s action stems from its February 2025 show cause order raising concerns that PJM’s tariff lacks clarity on rates, terms, and conditions for co-location arrangements. The Commission ordered PJM to justify its current tariff or propose changes to resolve these concerns. Today’s order addresses PJM’s response.