Docket No. EL25-49-000, ER24-2888-001 et al
FERC today voted unanimously to launch a review of issues associated with the co-location of large loads such as AI-enabled data centers at generating facilities in PJM, including whether the PJM tariff needs to establish rules to create clarity while ensuring grid reliability and fair costs to consumers. The Commission’s inquiry is initially focused on PJM, the nation’s largest grid operator, because of the number of proceedings arising in PJM from co-location of generators with large load customers such as data centers.
Today’s order institutes a show cause proceeding involving PJM and the PJM Transmission Owners and combines the records of two pending proceedings – FERC’s November 2024 technical conference on large load co-location and a complaint filed by Constellation Energy Generation, LLC against PJM Interconnection, L.L.C. – because of the common issues associated with the proceedings.
“The clear message from across the spectrum of views represented at our November 2024 technical conference was that FERC needs to act and act soon to address these issues,” Chairman Mark Christie emphasized. “Today we acted.”
“Co-location arrangements are a fairly new phenomenon that entail huge ramifications for grid reliability and consumer costs,” Chairman Christie said. “Given these ramifications, the Commission truly needs to ‘get it right’ when it comes to evaluating co-location issues.”
The Commission finds that PJM’s tariff does not appear to sufficiently address the rates, terms and conditions of service that apply to co-location arrangements. The absence of this information may leave generators and load unable to determine what steps they can take to set up co-location arrangements of various configurations, and how to do so in an acceptable way.
The show cause order directs PJM and the PJM Transmission Owners to, within 30 days, tell the Commission why the PJM tariff remains just and reasonable or, alternatively, what changes to the PJM tariff would remedy the Commission’s identified concerns.
In another order, FERC rejected Exelon Companies’ proposed tariff revisions that Exelon Companies state would clarify certain rules on the treatment of co-located load. The Commission ruled that Exelon Companies’ proposal exceeds their filing rights. Generic issues regarding co-location raised in Exelon’s filing, however, may be considered in the PJM proceeding initiated by the Commission.
R25-13