DOE urges PJM to require large new electricity users to pay for the generation and infrastructure needed to serve them.
October 9, 2026
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WASHINGTON—The U.S. Department of Energy (DOE) announced its support for the Federal Energy Regulatory Commission’s (FERC) guidance that would help ensure lower electricity costs for American families and businesses across the PJM Interconnection LLC's (PJM) region spanning across the mid-Atlantic. DOE filed a Notice of Intervention and Statement of Position with FERC supporting its recommendation for PJM’s proposed Reliability Backstop Procurement. FERC recommends PJM submit revised tariff provisions to implement appropriate cost allocation and other reforms. FERC’s recommendations are consistent with President Trump’s Ratepayer Protection Pledge, ensuring large electricity users pay for the generation and infrastructure needed to serve them.
This action follows the Trump Administration’s call in January 2026 for PJM to adopt market rules to strengthen grid reliability and reduce electricity costs. Specifically, the Administration asked PJM to hold an emergency power auction and to accelerate the development of reliable power generation. The Trump administration was joined by governors from all 13 states who participate in the PJM grid.
“The Trump Administration remains committed to doing everything it can to lower electricity costs, grow the supply of American energy and strengthen grid reliability,” said U.S. Secretary of Energy Chris Wright. “That’s why President Trump created the Ratepayer Protection Pledge, and the Energy Department supports having large electricity users pay for reliable new power generation.”
“In January, the Trump Administration recognized early warning signs of capacity shortfalls in PJM and joined the Governors of all 13 PJM states in issuing a Statement of Principles to PJM, calling for PJM to adopt market rules to strengthen grid reliability and reduce electricity costs for American families and businesses,” said U.S. Deputy Secretary of Energy James P. Danly. “By increasing transparency and preventing unjust cost shifts onto existing customers, the proposed reforms advance President Trump’s Ratepayer Protection Pledge while ensuring Americans continue to have access to affordable, reliable, and secure electricity.”
DOE supports an urgent procurement that would:
- Lower electricity costs for Americans by ensuring large load users pay for new generation and infrastructure.
- Protect households and businesses from subsidizing large loads.
- Use accurate and transparent demand information.
- Allow large loads to build, bring, or buy the capacity needed to serve them.
DOE urges PJM to comply promptly with FERC’s order and adopt durable market reforms that support reliable generation and protect American families and businesses.