As PJM members vote on Reliability Backstop Procurement and Connect and Manage, the real question is who funds the power systems behind AI growth. An interview with NRDC and a commercial real estate read on the cost-allocation fight.
The NextEra‑Dominion Merger shifts real pricing power to equipment access. With multi‑year transformer lead times and PJM capacity caps expiring, behind‑the‑meter strategy becomes an economic necessity, and what owners should model now.
PJM’s market redesign, accelerated backstop auction, and new regulatory criticism are changing capacity risk for commercial real estate owners in the largest U.S. grid.
PJM capacity auction cleared at $333.44 per megawatt-day. Data centers drove 40 percent of the cost. CRE owners in 13 states face NOI pressure starting June 2027.
PJM is introducing a connect-and-manage framework that prioritizes speed of connection over unconditional reliability. This shift requires large-load users to accept curtailment risk or provide onsite generation to ensure continuous operations.
PJM Interconnection warns of a possible 60 GW power shortfall in the next decade, driven by rapid data center growth and electrification and posing major challenges for planning, siting, and grid economics.