FERC orders PJM to rewrite co-location tariff rules

FERC has announced an order directing PJM to revise its tariff to create clearer rules for co-located generation and large loads, including AI-driven data centers.

• Main action: FERC told PJM to establish transparent tariff rules for serving co-located loads with generating facilities, and to revise its tariff to specify the terms and conditions for interconnection customers and transmission customers.
• Key requirements: PJM must offer four transmission options, including NITS, a new interim non-firm service, a new Firm Contract Demand service, and a new Non-Firm Contract Demand service; initial briefs on the proposed services are due February 16, 2026.
• Background/details: FERC also found PJM’s existing Behind-the-Meter Generation (BTMG) rules are no longer just and reasonable, declined to address certain jurisdictional issues for retail-load interconnection, and required an informational report by January 19, 2026 on reliability concerns and expedited interconnection measures.