PJM has proposed new behind-the-meter rules to manage the data center colocation boom, but industrial users say they're collateral damage. (Utility Dive)
Under a new FERC directive, PJM wants to stop new BTM setups larger than 50 MW from “netting” their load to reduce grid charges. Existing contracts are grandfathered in, and backup generation doesn’t count toward the cap.
To help integrate new AI loads, PJM is creating three new transmission service categories tailored specifically for colocated facilities: interim network integration, firm contract demand, and non-firm contract demand.
Worth noting: Trade groups fiercely oppose the 50-MW cap, arguing that without load netting, building new Combined Heat and Power (CHP) plants becomes economically unviable. If factories stop making their own power, they warn, they’ll be forced to pull even more electricity from an already stressed regional grid.