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Unpacking the PJM CIFP Decision: What PJM States Can Do to Ensure Affordable, Reliable Electricity During the Data Center Boom
The PJM region expects approximately 30 GW of new electricity demand by 2030, primarily from data centers, amid rising capacity market prices and slow interconnection timelines. In response, the PJM Board's January 2026 CIFP-LLA decision establishes a regional framework for load forecasting, 'bring-your-own resource' options, a 'connect and manage' curtailment approach, and a 'reliability backstop' capacity auction. RMI argues that states must operationalize this framework through specific retail-level actions: establishing large load tariffs (LLTs) to prevent cost-shifting, improving load forecast validation to reduce speculative requests, and implementing non-firm service tariffs to prioritize the curtailment of large loads over residential customers. Additionally, the briefing recommends that states pursue permitting reforms to accelerate new generation, deploy virtual power plants (VPPs) and advanced transmission technologies (ATTs) to expand grid capacity, and coordinate regionally to advocate for deeper PJM generator interconnection reforms.
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Document type: Briefing