Pittsburgh, PA and Washington, DC
FNREL Mineral and Energy Law Newsletter
Pennsylvania – Oil & Gas
(by Joe Reinhart, Sean McGovern, Matt Wood and Ethan Johnson)
In response to supply shortfalls due to data center demand, the largest regional transmissional operation in the United States, PJM Interconnection (PJM), has submitted its Expedited Interconnection Track (EIT) proposal to allow new generators to bypass the traditional interconnection queue. PJM is a regional transmission organization that coordinates the movement of wholesale electricity in 13 states and the District of Columbia. The EIT proposal operates in parallel to the standard PJM Cycle Process. PJM estimates a 10-month timeframe for the new, expedited process, whereas the standard Cycle Process can take up to four years or longer. PJM modified the EIT proposal based on stakeholder feedback, with key modifications including enhanced demand-side participation, better load forecasting, and improvements to the interconnection process. Eligible projects may be of any fuel type, but must:
- have a capacity larger than 500MW;
- be sponsored by a state within the PJM coverage;
- request Capacity Interconnection Rights simultaneously;
- achieve commercial operations within three years of submitting their application;
- submit a large non-refundable study deposit (> $500,000) and readiness deposit ($10k/MW); and
- provide three full years of site control for 100% of generating site & interconnection facilities at time of application.
If a project does not meet the eligibility criteria for the expedited track, an application may be submitted for the Cycle Process. Gas-fired generation made up 69% of the projects that PJM selected for interconnection review in May 2025. PJM forecasted that peak load across its footprint would grow 32 gigawatts (GW) from 2024 to 2030, with 30GW attributed to data centers. PJM also forecasts increased demand could lead to a 5% bill increase for rate payers by June 2026. PJM faces mounting pressure to curb rate increases. On November 5, 2025, Members of Congress representing the Mid-Atlantic region sent a letter to PJM urging more action to control increasing energy demand and electricity costs, primarily driven by data center growth.
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