PJM Interconnection has gone back to the Federal Energy Regulatory Commission with a revised version of its Reliability Backstop Procurement (RBP). The RBP is a one-time procurement meant to bring on new generation to cover the capacity shortfall left by the 2028/2029 Base Residual Auction, and to charge the cost to the large loads driving that shortfall, a shortfall PJM attributes to rapid growth in demand from Large Loads.

The amended filing went in on Oct. 29, 2026, according to PJM's Inside Lines newsroom. It came after FERC's Sept. 29 order on PJM's first version. PJM wants to open the procurement on March 1, 2027. Utility Dive reports that this is about seven months later than PJM first planned.

What the Backstop Is For

PJM puts the gap at "approximately 6,800 MW," and elsewhere in the same announcement gives the exact figure as 6,831 MW of capacity the 2028/2029 Base Residual Auction did not procure. PJM says it will recalculate the shortfall with updated information because the timeline has moved.

PSEG described the program in its Form 10-Q for the quarter ended Sept. 30, 2026. In PSEG's words, the framework seeks 15-year commitments from new generation to address a 6.8 GW shortfall for the 2028/2029 delivery year, with costs passed to load-serving entities (LSEs) and to end-use customers, including data centers.

PJM says the commercial terms are mostly the same as before. The procurement still seeks resources for up to 15 years. PJM's maximum willingness to pay is a MW-weighted average of $555/MW-day. Any qualifying megawatts procured through executed bilateral contracts would be subtracted from the procurement target.

How Sources Describe FERC's September Order

The sources describe FERC's Sept. 29 order in noticeably different terms. PJM says FERC "largely accepted" the initial proposal but suspended its execution for five months. Utility Dive says FERC rejected most of it. PSEG's 10-Q says FERC found key components just and reasonable, rejected others, and encouraged PJM to submit a revised filing within 30 days. All three agree on the outcome: PJM had to revise the plan and refile before any procurement could go ahead.

The PSEG filing also mentions a separate FERC order in October. That order rejected the principal components of PJM's large-load curtailment filing and found some aspects of it outside FERC's jurisdiction.

What PJM Changed

PJM says the amended proposal changes three things: how costs are allocated, the credit requirements for LSEs, and LSEs' responsibilities if they exit.

Cost allocation. Under the revised method, each LSE's share of the cost depends on its Large Load growth, measured as the difference between the actual 2026 summer peak and the forecast for the 2028/2029 Delivery Year. Electric distribution companies would have to report firm large-load growth. PJM says the distributors will report new Large Load quantities before the March bid window opens.

Opt-outs. PJM says the amended proposal drops an earlier opt-out for certain municipal utilities and cooperatives. A separate opt-out through a Peak Shaving Adjustment remains, but it now requires a plan covering at least five years.

Credit and exit. PJM says LSEs responsible for RBP charges would post credit at a revised, lower uniform rate with adjusted payment terms, and that an LSE exiting PJM would remain responsible for those charges for the rest of the commitment term. Utility Dive quotes Maria Scheller of ICF, who said the revisions lower the risk for providers of last resort, but that state rules on cost recovery and security also matter.

A Target That May Shrink

The 6,800 MW figure may not be the amount PJM ends up buying. Utility Dive reports that Jefferies analysts, in an Oct. 28 note, estimated the procurement could be as small as about 630 MW. The analysts based that on near-term large-load forecast cuts totaling 6.5 GW that PPL Electric, FirstEnergy and AES Ohio filed with PJM's Load Analysis Subcommittee. The 630 MW number is the analysts' estimate, not a PJM figure. PJM has said that it will recalculate the shortfall under the new timeline and set the final target on April 28.

Over a longer horizon, forecasts point the other way. On Nov. 2, Charles River Associates presented to PJM's Load Analysis Subcommittee a review of PJM's data center forecast. In its base case, data center demand in PJM reaches 30 GW by 2030 and 82 GW by 2047. CRA said that unless supply is added faster, PJM could face a shortfall of roughly 11.5 GW by 2030. A scenario with restricted growth rates lowered 2047 demand by 29.2 GW. CRA also identified uncertainty of up to 10.4 GW in the Dominion, AEP and ComEd zones.

Together, these figures show the planning problem behind the RBP. Some utilities have lowered their near-term large-load forecasts, while longer-range modeling still shows demand outrunning supply. The amended cost-allocation method uses reported firm large-load growth as its basis, so the reports distribution companies file before the March bid window feed into how PJM allocates costs, and PJM will set the final target on April 28.

The Procurement Calendar

If FERC approves the filing, PJM has laid out the following schedule:

PJM's proposed Reliability Backstop Procurement schedule
  1. RBP opens
  2. Bid window closes
  3. Final target and supply amounts set
  4. Results posted
Dates PJM proposed in its amended filing; the schedule depends on FERC approval. Source: PJM Inside Lines. DataCenterFeed graphic.
  • Before the bid window: Electric distribution companies report new Large Load quantities.
  • March 1, 2027: The RBP opens.
  • March 28: The bid window closes.
  • April 28: PJM sets the final procurement target and supply amounts.
  • May 10: PJM posts the results.

What Happens Next

FERC acts next. PSEG's 10-Q says PJM is seeking FERC approval of the revised filing by Jan. 29, 2027 and, assuming approval, plans to run the RBP auction on March 1, 2027. Utility Dive identifies the filing in FERC's eLibrary by accession number 20261029-5227. If FERC approves it on that schedule, distribution companies would report Large Load quantities before the March bid window, and PJM would post results on May 10.

Sources