What the backstop changes
PJM’s public proposal creates two parallel paths. A facilitated bilateral process would match electricity buyers with new generation, storage, or demand resources, while a central procurement would seek enough capacity to address the reliability shortfall identified in the 2028–2029 auction. The structure is designed to move faster than the ordinary market alone.
Speed does not settle the distributional questions. Regulators still need credible load forecasts, safeguards against overbuilding, transparent treatment of emissions and local impacts, and enforceable cost allocation. If exceptional data-center demand is the reason for new supply or transmission, residential customers should be able to see why they are—or are not—paying for it.
Go to the source
Read the evidence behind this analysis. External links open in a new tab.
Reuters — PJM moves ahead with a plan for swelling demand PJM — Reliability Backstop Procurement proposal
