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Federal energy regulators shoot down grid operator’s plan to cut power to data centers during shortfalls

The commission approved a registry for large electricity users but said PJM’s curtailment and cost-shifting rules overstepped federal authority.

  • The Federal Energy Regulatory Commission on Friday largely rejected PJM Interconnection's plan to require data centers to supply their own power, citing concerns that the proposal intruded on retail electricity regulation.
  • Facing rapid load growth, PJM proposed the Interim Resource Adequacy Service earlier this year to address reliability challenges as data centers are predicted to drive significant new electricity demand.
  • FERC approved PJM's new Large Load definition covering customers with at least 50 megawatts of peak load and a Large Load Registry to track facility location, capacity supply, and ramp schedules.
  • On Monday, the Department of Energy issued an emergency order to mitigate blackout risks across the PJM region, which Energy Secretary Chris Wright said addresses elevated demand and planned generator outages.
  • PJM spokesman Jeffrey Shields stated the organization is reviewing the commission's order, while Jefferies analysts suggest this proposal could be revived in future iterations, with Ohio and Pennsylvania as key states to watch.
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Utility Dive broke the news on Monday, October 12, 2026.
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