FERC Suspends PJM Emergency Power Auction Over Procurement Flaws
PJM Interconnection suspended a one-time emergency power auction after federal regulators ruled the procurement framework was deeply flawed and rushed.
The Federal Energy Regulatory Commission suspended a one-time emergency power auction managed by PJM Interconnection, the operator of the largest electrical grid in the United States. The auction was intended to address a 6.8 gigawatt supply shortfall across a region serving 67 million customers in 13 states and Washington, D.C.
Regulators described the procurement framework as an eleventh-hour attempt and cited specific failures regarding cost allocation, rules for transmission owners, and collateral requirements for load-serving entities. The original plan sought a 15-year procurement to maintain reliability while shifting costs toward the data centers responsible for increasing power demand.
FERC Chairman Laura Swett stated the commission "will not be forced into accepting a deeply flawed, eleventh-hour procurement." The suspension leaves a significant power gap that may result in higher utility bills for residential customers. PJM can attempt to accelerate approval by submitting a new filing within 30 days; otherwise, the current framework will not take effect until February 28, 2027.
