Electricity demand can arrive faster than a power plant. The Department of Energy said on October 9 that it supports federal action requiring large new electricity users in the PJM region to bear the cost of generation and infrastructure needed to serve them.
The argument is about cost causation. Data centers and other large loads can require new generation, transmission upgrades and reliability procurement before they reach full operation. If the rules socialize those costs too early or too broadly, existing customers finance capacity built for demand they did not create.
FERC has already directed PJM to create transparent rules for large loads co-located with generation and has opened further proceedings on the reliability and affordability problems created by rapid load growth. Commissioners have also emphasized better forecasts, collateral and contracts because announced projects do not always become operating demand.
The unresolved work is implementation. Federal statements establish a policy direction, not a completed tariff. PJM, utilities, state regulators and FERC still have to decide which upgrades are attributable to a particular customer, how long commitments must last and who pays when a project is delayed or cancelled.
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