PJM’s Queue Freeze and Backlog Crisis Drive Up Energy Costs, Stall New Power Projects

10/24/2025

Regional electric grid controller PJM has been experiencing significant issues with their interconnection queue backlog in recent years. In 2022, PJM closed its interconnection queue to new generation projects stating it would implement queue reform and be able to process interconnection requests faster after it cleared the existing queue. The reform was approved and rolled out in 2022, and has delayed new generation project applications until 2026. This delay in accepting new projects has helped increase electricity prices in recent PJM energy auctions.

PJM is implementing this reform with a clustered process, also called a “first-ready, first-served” approach. This reform includes two transition cycles to help clear the existing queue. PJM recently announced that it had completed the study process for all Transition Cycle 1 (TC1) projects. TC1 includes almost 9,900 megawatts (MW) of interconnection requests across the PJM region, with more than 440 MW of solar and storage approved to be installed in Ohio. Additionally, PJM has announced approval of 410 MW of natural gas capacity in Ohio under the Reliability Resource Initiative. Although this 850 MW of generation being approved does not guarantee that it will all come online before the next few capacity auctions, or at all, as PJM’s interconnection approval is just one step of many to bring transmission generation projects to fruition. 10/23/2025

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