PJM IMM Opposes KKR–EDF Section 203 Acquisition Absent Commitment to Keep 938 MW in PJM Markets

Monitoring Analytics (the PJM Independent Market Monitor) filed comments at FERC in Docket No. EC26-151 opposing approval of KKR's proposed acquisition of EDF power solutions' North American renewable energy business (938 MW of PJM generation held by EDF Spring Field, Fox Squirrel, Kelly Creek, and Pilot Hill) unless KKR commits not to remove the acquired capacity and energy from PJM markets to serve its growing data center portfolio (CyrusOne, Helix Digital Infrastructure, NVIDIA-led AI infrastructure partnerships).

The filing raises a novel theory of market power exercise via physical withholding through vertical integration of generation ownership with data center load-serving entities, in the context of PJM capacity shortfalls across the last three Base Residual Auctions. If FERC adopts the IMM's proposed non-removal condition, it would set a precedent for conditioning future Section 203 approvals on commitments to keep acquired generation in RTO wholesale markets whenever the acquirer has data center or large-load affiliations.

This is a transaction-specific Section 203 proceeding, but its significance extends beyond the individual deal: it tests whether FERC's merger-approval conditioning authority (per the 1996 Merger Policy Statement, Order No. 592) can be extended to address the intersection of private-equity ownership of both generation assets and hyperscale data center infrastructure. The IMM explicitly analogizes this to the open-access conditioning precedent of the 1990s, arguing that PJM's existing deactivation rules do not clearly apply to capacity removed to serve co-located or affiliate data center load, creating a regulatory gap. A FERC decision adopting the proposed condition would likely become a template provision in future merger reviews involving data-center-affiliated acquirers in PJM and potentially other RTOs, directly affecting how private equity and hyperscalers structure vertical integration deals involving existing RTO generation.

Federal Power Act Section 203; FERC Merger Policy Statement (Order No. 592, 1996); PJM Open Access Transmission Tariff, Operating Agreement, and Reliability Assurance Agreement; White House Ratepayer Protection Pledge; National Energy Dominance Council Statement of Principles Regarding PJM (January 16, 2026)

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