HD Intelligence Desk · October 5, 2026

FERC Suspends PJM's Reliability Backstop. The September 30 Window Does Not Open

Published October 5, 2026

What Happened

On September 29, 2026, FERC issued 196 FERC ¶ 61,245 in Docket Nos. ER26-3380-000 and EL26-108-000. The order accepts PJM's Reliability Backstop Procurement for filing, suspends it for five months, effective February 28, 2027, subject to refund, and sets a paper hearing on cost allocation, transmission-owner exit rules, and load-serving-entity collateral, including a proposed initial credit rate of $1.5 million per committed RBP MW. The order finds that tariff records closing the bid solicitation in October 2026 may be unjust and unreasonable because those dates fall inside the suspension, and PJM had conditioned a September 30 opening on acceptance by September 29 without significant revisions. On September 30 PJM said the process will not begin that day, timing is to be determined, and it will update the Market Implementation Committee on October 7.

Why It Matters

We hold PJM at D. Time-to-power is 35% of the grade: the 2027/2028 Base Residual Auction cleared 6,623 MW short of the reliability requirement, the largest driver was 5,250 MW of forecast load growth, nearly 5,100 MW of it data centers, and the auction cleared at the $333.44/MW-day cap. The September 30 procurement is suspended to February 28, 2027, cost allocation stays in the paper hearing, initial briefs are due 45 days from September 29, and the order says a new section 205 filing within 30 days would support holding that briefing in abeyance. Large-load tariff climate is 20% of the grade, trend stays down, and the same shock is not cut twice.

Sources

  1. 01Order Accepting Reliability Backstop Procurement and Establishing Further Procedures, 196 FERC ¶ 61,245 — FERC, Sep 29 2026
  2. 02FERC chair slams PJM 'mess' as country's largest grid operator delays power auction — Utility Dive, Sep 30 2026
  3. 03FERC Accepts PJM Proposed Reliability Backstop Procurement, But Suspends It for Five Months — American Public Power Association, Oct 2 2026