The Federal Energy Regulatory Commission (FERC) has rejected the core of PJM Interconnection’s plan to curtail new large loads, such as data centers, that do not bring their own new capacity, in an order issued on 9 October 2026. FERC accepted PJM’s definition of a Large Load, 50 MW or more at a single site, and a Large Load Registry, both effective 12 October 2026.
Commissioner David Rosner concurred, writing that “in an emergency, data centers not serving critical functions should be shut off before ordinary customers,” and that state regulators should set the rules for which customers are curtailed first.
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The key insight: As we read it, the order moves the curtailment question to the states: FERC accepted a registry that gives PJM visibility into every 50 MW+ load, and rejected a plan it found appears to dictate which retail customers are curtailed.
FERC found PJM’s Large Load definition just and reasonable. It covers end-use customer load with a cumulative peak of 50 MW or greater at a single electrical site, and counts all affiliated load facilities within a one-mile radius as a single site.
FERC says the one-mile rule will preclude a scenario where a data center is not categorized as Large Load because the owner sited several smaller data centers, each below 50 MW, close together. It also declined to limit the definition to data centers, so manufacturing and other large loads are included.
The registry requires load-serving entities to give PJM information on the Large Loads they serve, including location, in-service dates, peak load and ramp schedule, telemetry and backup generation. FERC says it will enable PJM to better forecast load growth and plan its transmission system. FERC notes PJM will follow its existing confidentiality rules and post only aggregated data on its website.
The six elements of PJM’s 13 August 2026 large-load filing, as listed in FERC’s order of 9 October 2026 (Docket ER26-3515-000). FERC accepted the Large Load definition and the Large Load Registry, effective 12 October 2026, and rejected the Interim Resource Adequacy Service (IRAS), the requirement to designate new capacity, the Bring Your Own New Capacity (BYONC) rules and the exclusion of new large loads from the capacity demand curve.
What FERC Rejected, and Why
The rejected package centred on an Interim Resource Adequacy Service (IRAS). Under it, PJM could direct Electric Distributors to reduce load from Eligible New Large Loads during a shortfall unless that load was offset by new capacity, including through “Bring Your Own New Capacity” (BYONC) arrangements.
FERC found that “several provisions of the proposed Tariff appear to place obligations directly on Eligible New Large Loads, which are, for the most part, retail customers.” It also found that other provisions appear to dictate which retail customers would be curtailed, and that the compensation framework appears to establish a retail rate, which is for states to regulate.
FERC also found that PJM had not offered sufficiently detailed evidence that treating load-serving entities differently based on their retail customers’ characteristics is not unduly discriminatory, and had not justified locking in the capacity accreditation of BYONC resources. It rejected the definition of New Large Load without prejudice.
FERC flagged a reliability concern too. It says Reliability Standard EOP-011-4 permits firm loads to be curtailed only after an EEA3 alert, while PJM’s proposal would have curtailed certain firm load on an involuntary basis earlier, at EEA1.
Rosner: States Should Set the Order
In his concurrence, Rosner wrote that PJM’s filing “flips this paradigm, proposing to force IRAS load off the system in the earliest stages of emergency conditions, before PJM deploys demand response.”
He added that, because PJM would exclude IRAS load from its capacity demand curve, “The result could be a capacity market signaling that PJM has more than enough capacity while the region sheds thousands of megawatts of demand on an involuntary basis.”
He wrote that “homes, hospitals, and schools should never be curtailed before data centers,” and that “We need state regulators to establish clear rules for which customers should be curtailed first when circumstances require it.”
Why PJM Asked
According to the order, PJM states that from the 2027/2028 Delivery Year it will be short of sufficient capacity to meet its regional reliability requirement, particularly due to data center load growth and the pace of data center interconnection.
On 11 October we reported on a Senate deal that would make data centers pay for grid upgrades, and on BUZZ HPC, which says it will pay its grid costs for a 320MW site.
Google and Microsoft filed comments or protests in the proceeding, and Anthropic is listed as an intervenor, according to the order’s appendix. FERC says that “States have a crucial role to play in this challenge by designating which retail customers must be curtailed when the system is stressed.”
What Happens Next
FERC directed PJM to submit a compliance filing within 30 days with only the Large Load definition and the registry, and said PJM may refile a modified IRAS proposal. It pointed to a voluntary non-firm transmission service as one possible avenue.
PJM is reviewing the order with “an eye toward how we can fulfill FERC’s requirements while recognizing the responsibilities FERC indicated belong to the states,” PJM spokesman Jeffrey Shields told Utility Dive on 12 October 2026.
The Structural Read
As we read it, visibility came first: FERC says the registry will enable PJM to better forecast load growth and plan its transmission system, separate from the rejected curtailment plan.
As we read it, the jurisdiction finding is the main obstacle: FERC says the tariff appears to place obligations directly on Eligible New Large Loads, which are, for the most part, retail customers, and that the compensation appears to establish a retail rate.
As we read it, the next step is with state regulators: FERC says states have a crucial role in designating which retail customers must be curtailed when the system is stressed, and Rosner says state regulators should set those rules.
David Rosner, Commissioner, FERC, concurring statement, 9 October 2026
“We need state regulators to establish clear rules for which customers should be curtailed first when circumstances require it.”
Three Implications
DATA CENTER DEVELOPERS FERC accepted a definition that counts affiliated facilities within one mile as one site, so several sub-50 MW buildings close together can count as one Large Load.
STATE REGULATORS FERC says states have a crucial role in designating which retail customers must be curtailed when the system is stressed.
PJM FERC directed a compliance filing within 30 days and said PJM may refile a modified IRAS proposal; PJM says it is reviewing the order.
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As we read it, FERC’s order shows the grid side of that power equation: PJM says its capacity shortfall comes particularly from data center load growth, and FERC says the curtailment rules for those loads are partly a matter for the states.
The Large Load definition FERC accepted on 9 October 2026: a cumulative peak of 50 MW or greater at a single electrical site, with affiliated facilities within a one-mile radius counted as one site. The registry takes effect on 12 October 2026, PJM must make a compliance filing within 30 days, and PJM says it will be short of capacity from the 2027/2028 Delivery Year.
What Is Not Established
The order does not say how many megawatts of load the registry will cover, and the registry’s detailed data will be confidential, with only aggregated data posted. It is not known whether PJM refiles IRAS, or how states set curtailment priorities. Rosner’s views are his own concurrence, not the Commission’s order.
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FERC accepted PJM’s 50 MW Large Load definition and its Large Load Registry, effective 12 October 2026, and rejected the plan to curtail new large loads that do not bring new capacity, finding it appears to reach into retail matters that belong to the states.
A note on sourcing. On 12 October 2026 we read FERC’s order of 9 October 2026 in Docket ER26-3515-000 in full, including Commissioner Rosner’s concurring statement and the list of intervenors. PJM’s statement is from Utility Dive’s report of 12 October 2026. The findings are FERC’s, the concurrence is Rosner’s own view, and PJM’s capacity outlook is PJM’s. Nothing here is legal or investment advice.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
