PJM Board Unveils 2026 Grid Action Package to Integrate Data Centers and Strengthen Reliability

PJM Interconnection Board of Managers on Jan. 16 outlined a comprehensive set of actions it plans to advance in 2026 to address surging electricity demand from data centers and other large new customers, while protecting reliability and affordability across its service territory. The initiative follows a Critical Issue Fast Path process in 2025 that generated 12 proposals and detailed analysis, shaping a final package that draws from multiple concepts.

The board’s roadmap includes three categories of actions: filings to be submitted directly to the Federal Energy Regulatory Commission; immediate updates to PJM policies and procedures; and new stakeholder processes to inform decisions on unresolved design issues. PJM described the measures as a response to an emerging supply-demand imbalance that could strain reserve margins and raise wholesale electricity costs, increasing pressure on consumer bills.

Key elements of the package include strengthening load forecasting, along with expanding the role of states in the planning process. The board also supported options that allow large new customers to bring new generation to the system or connect under an approach that enables earlier curtailment during periods of system need.

To accelerate new supply, PJM plans to create an expedited interconnection pathway for state-sponsored generation projects. In parallel, the board directed immediate initiation of a backstop generation procurement process to address near-term reliability risks.

The plan also calls for a broader review of PJM market design to assess how existing market structures can better support timely investment. As part of that review, the board will seek stakeholder feedback before deciding whether to extend the auction price collar for the 2028/2029 and 2029/2030 auctions. PJM characterized several measures as interim steps until supply-demand balance and reserve margins improve.