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United States (PJM region) · pjm-large-load-interim-resource-adequacy-service-iras

PJM Files Interim Resource Adequacy Service (IRAS) Framework for Large Load Data Center Integration

Proposal
ADEQUACY & CAPACITY MARKETSMULTI-TIMEFRAMElarge load integrationresource adequacycapacity market design accountingemergency demand reduction proceduresdata center interconnectionload curtailment hierarchy
1Problem identified
2Consultation
3Proposal
4Regulatory review
5Decision
6Implementation
7Go-live
8Market impact
What changed

PJM filed a new framework with FERC to manage the integration of Large Load customers (primarily data centers) that do not bring their own power supply. The proposal creates an Interim Resource Adequacy Service (IRAS), a new emergency demand-reduction procedure that would curtail new Large Load consumption ahead of traditional Load Management customers and residential consumers during resource shortfalls. It also establishes a Large Load Registry to track all Large Loads and requires LSEs/Electrical Distributors to bring new capacity matching new Large Load peak demand or face proportional curtailment. Beginning with the 2029/2030 capacity auction, unsupported new Large Load demand would be excluded from future capacity procurement calculations.

Why it matters

With 30 GW of PJM's forecast 32 GW demand growth (2024-2030) attributed to data centers, this proposal represents a structural change to how resource adequacy risk from Large Loads is allocated, protecting existing capacity market participants and residential ratepayers while creating new institutional infrastructure (registry, emergency curtailment hierarchy) and altering capacity auction accounting mechanics.

Design impact
Price formation●●●
Cross-border capacity○○○
Liquidity●○○
Operational security●●●
Market participants●●●
Affected markets
PJM capacity market (Reliability Pricing Model)PJM real-time emergency/balancing operationsReliability Backstop Procurement process
Who is affected
Large Load customers (data centers)Load Serving Entities (LSEs)Electrical DistributorsState public utility commissions/regulatorsLoad Management (demand response) customersResidential and traditional ratepayersPJM as ISO/RTO
MD analysis

This is a significant precedent-setting resource adequacy design intervention that inserts a new curtailment priority class (unsupported new Large Loads) ahead of paid Load Management resources, effectively creating a de facto interruptible service tier without compensation guarantees unless states opt to compensate. The capacity market accounting change (excluding unsupported new Large Load demand from 2029/2030 auction requirements) could materially affect capacity price formation by altering the demand curve basis, while the Large Load Registry introduces new data governance and confidentiality considerations. The proposal deliberately preserves state jurisdiction over retail load-shedding plans and cost allocation, creating a federal-state coordination dependency that could produce implementation friction. FERC's 60-day review request suggests PJM views this as urgent given the scale of pending Large Load interconnection requests.

Rule / framework

Federal Power Act Section 205 filing with FERC to amend PJM's Open Access Transmission Tariff / Reliability Assurance Agreement provisions governing resource adequacy and emergency procedures

Next milestone

Primary sources

PJM · ISO · 2026-08-13

PJM Proposes Framework To Connect Data Centers Without Compromising Reliability, Affordability

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