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FERC approves PJM queue reform

 FERC approves PJM queue reform to speeding up grid interconnecting backlogs (2,700 active projects worth 250 GW at various points in study process as of May this year). One of the main issues was dealing with speculative projects entering/staying in the queue.

  • FERC determines and agrees with PJM (original reform) that the RTO must be moving from first-come, first served queue process to first-ready, first-served clustered cycle approach to tackle the massive backlog.
  • PJM also proposed certain other reforms aimed at minimizing the number of speculative and non-ready projects entering the queue, including imposing readiness requirements and providing off-ramps for stalled or delayed projects to withdraw from the queue.
  • FERC also signed off on PJM's proposal for transitioning to the new process, which includes provisions to expedite new projects expected to have minimal impacts on the transmission system.
  • In addition, the agency approved more stringent site control requirements aimed at discouraging or preventing project developers from submitting speculative projects.
  • FERC approved PJM's proposal to eliminate suspension rights, which allow applicants with non-ready projects to suspend the processing of an interconnection request for a limited period of time while they attempt to arrange financing or otherwise determine whether and how to move forward with their projects.
    • Developers instead will be allowed to extend milestones (other than site control) for up to one year.