PJM Interconnection, the grid operator for Pennsylvania and 12 other states, faces a mid-December deadline to finalize rules for managing the growing influence of data centers and other large electricity users on power prices and system reliability.
Its 800-member committee recently reviewed competing proposals on how to integrate these large loads and allocate the costs of new generation and transmission. None achieved the supermajority needed for stakeholder approval, leaving PJM’s board to decide which plan, or combination of plans, to advance to federal regulators next month. The timeline aims to implement reforms before next summer’s capacity auction, which sets payments to generators that commit to meeting peak demand.
The rulemaking effort coincides with renewed debate in Pennsylvania over energy policy.
Lawmakers recently withdrew the state from the Regional Greenhouse Gas Initiative in a deal to break the budget stalemate while disagreements persist over renewable-energy support, consumer protections, and how to manage rising demand driven by data-center growth.
Analysts note that Pennsylvania continues exporting power even as neighboring states retire older plants, increasing strain on PJM’s system.
PJM forecasts a 20% rise in peak demand over the next decade, largely due to data-center expansion. Recent capacity auctions have produced record prices, contributing to higher customer bills. Competing proposals would either require large users to reduce consumption during high-price periods, allow them to build their own generation with expedited approvals, or restrict new large loads until sufficient capacity is available.
About the Harrisburg Regional Chamber & CREDC
For 140 years, the Harrisburg Regional Chamber & CREDC has served as the region’s catalyst for economic prosperity. The organization combines business, community, and economic development services to enhance the region’s vitality and livability. The Chamber is a five-star accredited chamber through the U.S. Chamber of Commerce—a distinction held by fewer than 1 percent of chambers nationwide. CREDC is the Certified Economic Development Organization for Cumberland, Dauphin and Perry counties
The Capital Region Economic Development Corporation (CREDC) is the economic development arm of the Harrisburg Regional Chamber and the Certified Economic Development Organization (CEDO) approved by the Commonwealth’s Department of Community and Economic Development to perform economic development activities using Pennsylvania’s funding programs in Cumberland, Dauphin, and Perry counties.
