U.S. Energy Department Backs FERC Reforms to Protect PJM Ratepayers

The U.S. Energy Department on Oct. 9 expressed its support for Federal Energy Regulatory Commission recommendations for PJM Interconnection’s proposed Reliability Backstop Procurement, seeking to ensure that large electricity users pay for the generation and infrastructure needed to serve their demand. DOE has filed a statement with FERC supporting revised market rules and other reforms intended to protect households and businesses from higher electricity costs while maintaining grid reliability across the mid-Atlantic region.

The commission recommended that PJM submit revised tariff provisions addressing cost allocation and other market reforms. The recommendations align with President Trump’s Ratepayer Protection Pledge, which seeks to prevent residential and commercial customers from subsidizing infrastructure required to serve large electricity consumers, including data centers and other energy-intensive facilities.

The action follows the Trump administration’s January 2026 call for PJM to strengthen market rules, improve grid reliability and reduce electricity costs. The administration urged the grid operator to conduct an emergency power auction and accelerate the development of reliable generation resources. Governors from all 13 states participating in the PJM system joined the administration’s call for measures to address rising electricity demand and affordability concerns.

DOE outlined several priorities for the proposed procurement, including ensuring that large electricity users cover the costs of additional generation and infrastructure, protecting households and businesses from subsidizing new demand, and improving the accuracy and transparency of electricity demand information. The department also supports allowing large electricity consumers to build generation facilities, bring their own power resources, or purchase the capacity needed to meet their requirements.

The proposed reforms could influence how the costs of meeting growing electricity demand are distributed among customers while encouraging large electricity users to secure adequate power supplies. DOE urged PJM to implement FERC’s recommendations promptly and adopt lasting market reforms, with implementation dependent on revised tariff provisions and the resulting market arrangements.