PJM this week introduced and is seeking feedback on a preliminary proposal based on increased load forecasts.

The special arrangement, called non-capacity baked load, would be triggered only if generator supply is short of the reserve requirement for the capacity auction. In that case, PJM will ask for volunteers among new large loads over 50 MW to be curtailable, that is, the first thing curtailed on the network, even before demand response. In return, the large load would not have to pay for capacity. If PJM can’t get enough volunteers, it will require a portion of new large loads to be curtailable. It is unclear if this proposal will be able to meet PJM’s intent: speed up the interconnection of large loads and significantly reduce capacity prices. It is also not clear that PJM’s proposal addresses critiques from a coalition of manufacturers and consumer groups that utility load forecasts could be overestimated, are uncertain, and lack transparency. 8/20/2025