FERC Directs Revisions To Enable Co-Located Load (Data Centers) And Generation

On December 18, 2025, the Federal Energy Regulatory Commission (FERC) took a significant step to break up the log jam that is precluding large load and data centers to receive power in the PJM Interconnection, L.L.C. (PJM) region of the United States.¹ FERC issued an Order finding that PJM's existing rules that pertain to generation that interconnects with load behind the point of interconnection (BTMG) are unjust and unreasonable and must be revised. FERC's directives to PJM likely signal what FERC may require in some form throughout the nation.

There are many sub-parts and requirements that FERC directed, but in general FERC's directives fall into two categories.

First, BTMG should be evaluated by PJM only to the extent of actual intended injection to the grid. FERC explains that, if a 1,000 MW generator will use 900 MW to serve co-located load and lean on the PJM transmission grid for only 100 MW, then PJM need only study the 100 MW.