The PJM Interconnection’s (PJM)—the grid operator for the Mid-Atlantic and Midwest regions—Reliability Resource Initiative (RRI), a fast-track interconnection process, attracted 94 applications totaling 26.6 GW.
The proposed projects include new and uprated nuclear and natural gas-fired power plants, as well as new battery storage. Half of the proposals are new projects, while the other half would increase capacity at existing power plants.
LS Power, an independent power producer, proposed converting two peaking facilities in Pennsylvania and Ohio to baseload combined cycle plants for an additional 600 MW, along with uprates totaling about 100 MW at other power plants in Pennsylvania and Virginia. The projects would cost about $1 billion. Alpha Generation proposed about 450 MW in uprates at four power plants in Maryland, New Jersey, and Ohio.
The Federal Energy Regulatory Commission (FERC) approved PJM’s one-time RRI in mid-February 2025 on a 3-1 vote. Under the process, PJM will consider adding up to 50 shovel-ready projects that meet certain reliability and commercial operation date criteria to the just-started interconnection Transition Cycle (TC) 2, which already contains about 550 projects totaling about 50 GW in nameplate capacity.
PJM unveiled its RRI Straw Proposal on October 18, 2024, outlining strategies to mitigate rising resource adequacy challenges across the PJM network amidst unprecedented load growth, significant generator retirements, and the evolving dynamics of the energy market. To address this, PJM introduced TCs—structured phases designed to better manage the high volume of projects seeking interconnection. Eligible projects must meet specific reliability criteria, including maintaining an effective load carrying capability (ELCC) rating of at least 45 per cent through commercialization. High-demand resources, such as offshore wind (OSW) and energy storage, would be prioritized. PJM uses a formula-based scoring system to rank applicants, selecting those with the greatest potential to enhance grid reliability.
The RRI proposal was in response to PJM’s concerns that its power supply margins are slipping in the face of power plant retirements and growing electricity demand. The grid operator estimates that it could face capacity shortfalls as soon as 2026. PJM estimates the RRI could bring about 10 GW online 18 months earlier than if the projects followed the grid operator’s normal interconnection process.
Adding RRI projects to TC2 is key to bringing additional capacity to the PJM markets before 2030. Even for those that cannot meet the timeline, it still benefits the PJM markets to have projects with an overall high score get a head start toward construction and commercial operation through participation in the RRI process.
In a prelude to potential lawsuits over FERC’s approval of the RRI, various companies, state officials and organizations this month asked the agency to reconsider its decision. They included Invenergy Renewables, American Clean Power Association, Solar Energy Industries Association, Advanced Energy United, MAREC Action, Sierra Club, Natural Resources Defense Council and other groups, the Office of the Ohio Consumers’ Counsel, and the Environmental Law & Policy Center. In part, they contend the RRI discriminates against proposed power projects that have been waiting in PJM’s interconnection queue.
FERC’s approval of PJM’s queue-jumping proposal has begun to erode confidence in PJM’s interconnection rules and catalyze additional proposals to undermine open access in other regional transmission organizations (RTOs), stated Invenergy in its March 13 rehearing request. Last week, the Midcontinent Independent System Operator (MISO) also asked FERC to approve a special fast-track interconnection review process.
PJM expects to release more details about the RRI in mid-April 2025.