Utility Dive•about 1 month ago
FirstEnergy opposes key part of PJM data center backstop procurement plan
Key Takeaway
PJM's critical backstop plan for data centers faces significant utility opposition, while state-level regulatory pressure on rate affordability signals a challenging environment for future power costs and infrastructure development.
AI Summary
- •FirstEnergy, a major utility, opposes a key part of PJM's planned backstop procurement mechanism specifically designed for data centers, citing flaws in its design.
- •This opposition signals potential challenges and uncertainty for data center developers and large power consumers regarding future power procurement and reliability in the PJM region.
- •Pennsylvania Governor Josh Shapiro's administration will oppose utility rate hike requests that fail to meet affordability criteria, indicating increased regulatory scrutiny on electricity costs for all consumers, including large industrial and commercial loads.
- •For developers and large power consumers, these developments suggest potential shifts in PJM's resource adequacy mechanisms and increased pressure on retail electricity rates, impacting project economics.
Topics
capacity-marketdatacenterpjmpolicy
Article Content
The PJM Interconnection’s planned backstop auction is flawed, said CEO Brian Tierney. Separately, Pennsylvania Gov. Josh Shapiro said his administration will oppose rate hike requests that fail to meet affordability criteria.