Watchdog sounds the alarm that PJM's approval of data centers could leave other customers in the dark

"In a complaint filed on November 25 with the Federal Energy Regulatory Commission, Monitoring Analytics, LLC, an independent market monitor for PJM, requested that the regulator mandate that the energy wholesaler only add large data centers to its system if all customers can be reliably served. "PJM is currently proposing to allow the interconnection of large new data center loads that it cannot serve reliably and that will require load curtailments (black outs) of the data centers or of other customers at times," the complaint read."

""That result is not consistent with the basic responsibility of PJM to maintain a reliable grid and is therefore not just and reasonable," the complaint added. PJM serves over 65 million people, including households and other consumers, across all or parts of 13 states and the District of Columbia. While it is not a utility provider, it helps move electricity across a service area of about 369,000 square miles."

"According to the complaint, large data centers are responsible for higher transmission costs, as well as energy and capacity prices. Monitoring Analytics added that existing and expected data center loads already increased PJM's capacity revenues in its last two capacity auctions by $16.6 billion, and the figure would only "continue to grow." The complaint also described a "Critical Issues" meeting among PJM's Board of Managers to address the issue of data centers, but the board ultimately could not come to an agreement since "most stakeholders simply"

Monitoring Analytics, PJM's independent market monitor, filed a complaint with FERC on November 25 requesting a mandate that PJM only add large data centers if all customers can be reliably served. The complaint warns that PJM's current proposals would allow interconnection of large new data center loads that cannot be reliably served and could require load curtailments for the centers or other customers. The complaint links data center expansion to higher transmission, energy and capacity prices, noting $16.6 billion in added capacity revenues in the last two auctions. PJM serves over 65 million people across 13 states and the District of Columbia.

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