PJM Stakeholders Reject All 12 Data Center Energy Proposals

Stakeholders at PJM Interconnection, the largest electrical grid operator in the United States, rejected all 12 final proposals on Wednesday intended to regulate the energy demands of the rapidly growing data center industry. The failed measures, including the Protect Ratepayers Proposal and submissions from the Maryland Office of the People's Counsel, sought to require data centers to supply their own electricity or face service curtailment during peak stress periods to prevent costs from shifting to residential customers.

No proposal reached the required two-thirds support within each stakeholder sector. Maryland Delegate Lorig Charkoudian criticized the outcome, stating there was no clear consensus to ensure data centers pay their fair share of electricity prices. People's Counsel David Lapp warned that without corrective action, cost increases for existing customers will skyrocket over time.

Because the stakeholder vote was advisory, PJM President and CEO Manu Asthana and Board Chair David Mills stated the Board of Managers will now review the input to develop a final decision. The board may combine elements from various proposals and is expected to announce a decision regarding large load additions to the system within the next few weeks.