On June 14, 2022, PJM Interconnection[1] filed with the Federal Energy Regulatory Commission (FERC) to overhaul its interconnection study process to a “first-ready, first-served” approach that reviews proposals and assigns upgrade costs in clusters.[2] According to PJM, the largest grid operator in the U.S., the proposed changes are a response to the huge influx of interconnection requests over the last few years within its footprint. The grid operator had 2,700 projects in its interconnection queue, representing more than 250 GW, as of May 10, 2022. The proposed reforms aim to speed up the interconnection process by allowing projects that are more commercial ready to be processed before other more speculative projects. Speculative projects that withdraw late in the review process can create delays, creating a need to redo the review process. PJM’s proposal would conduct system impact studies and cost allocation for groups of projects or clusters rather than project-by-project. PJM’s proposal was widely supported in an 18-month stakeholder development process. If approved by FERC, PJM expects to review interconnection applications filed after October 1, 2021, starting in early 2026. PJM requested that FERC approve the proposal by October 3, 2022.

[1] PJM serves all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of Columbia.

[2] https://elibrary.ferc.gov/eLibrary/filedownload?fileid=f3f74b1d-7352-c120-9c75-81631eb00000