In this episode, I break down PJM's recent filing to the Federal Energy Regulatory Commission (FERC) for an Interim Resource Adequacy Service (IRAS)
. As massive new data center loads exert a tremendous pull on grid reliability, power quality, and energy prices, this interim proposal represents a major new regulatory mechanism to manage large electrical loads
.
Here are the key details from the proposal that I analyze in this video:
The Scale of the Problem: Out of 32 gigawatts of forecasted demand growth in PJM between 2024 and 2030, a massive 30 gigawatts of that growth is driven by data centers
.
What is IRAS? PJM’s proposed Interim Resource Adequacy Service focuses specifically on new Large Load customers (primarily data centers) that do not provide their own power supply
.
The Emergency Shedding Protocol: Under IRAS, during periods of high grid stress, PJM would initiate an emergency notification procedure
. This signals utilities to reduce or transfer the electricity demand of these new large loads before calling on standard demand response resources or proceeding to rotating blackouts
.
The "Build, Bring, or Buy" Standard: Large loads that do not bring new capacity or cover their demand through the upcoming Reliability Backstop Procurement will be subject to IRAS
. This matches the White House Ratepayer Protection Pledge to "build, bring, or buy" the generation resources needed to satisfy new energy demands
.
The Large Load Registry: PJM plans to maintain a registry to track large loads and furnish information to state regulators and utilities
. This allows state-level entities to manage retail load reduction and cost allocation while PJM retains the tools needed to handle grid reliability
.
Emergency Demand Reductions: If utilities do not acquire capacity equal to or above the combined peak demand of these new large loads, PJM would direct those specific zones to reduce demand proportionally during emergencies
. Large loads may also waive compensation for cutting demand to protect ratepayers from rising bills
.
The 2029/2030 Capacity Auction Shift: Starting in December with the 2029/2030 base residual capacity auctions, new large loads that arrive without the necessary power supply won't be included as demand when future power needs are calculated
.
The Ratepayer Cost Impact: Over the last four capacity auctions (mid-2025 to mid-2029), PJM's capacity charges totaled over $63 billion
. The Independent Market Monitor calculated that data loads drove up capacity costs by $29.4 billion—accounting for approximately 46% of total capacity payments
. Most of these data loads are currently only projected rather than actually built
. This December's auction results will give us a clear look at how data loads continue to impact ratepayer costs
.
If you find this analysis of grid reliability and energy regulation helpful, please like, subscribe, and leave a comment with your thoughts on how your region is handling data center load growth.

Support the show

🎙️ About Energy Future: Powering Tomorrow’s Cleaner World

Hosted by Peter Kelly-Detwiler, Energy Future explores the trends, technologies, and policies driving the global clean-energy transition — from the U.S. grid and renewable markets to advanced nuclear, fusion, and EV innovation.

💡 Stay Connected
Subscribe wherever you listen — including Spotify, Apple Podcasts, Amazon Music, and YouTube.

🌎 Learn More
Visit peterkellydetwiler.com
for weekly market insights, in-depth articles, and energy analysis.