DOE backs FERC push for PJM reliability backstop procurement

DOE's notice supports FERC's plan to shift new generation costs to large PJM users, pending tariff revisions.

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The U.S. Department of Energy filed a Notice of Intervention and Statement of Position with the Federal Energy Regulatory Commission, endorsing FERC's recommendation for PJM Interconnection's proposed Reliability Backstop Procurement.

FERC recommends that PJM submit revised tariff provisions to implement appropriate cost allocation and other reforms, a course of action described as consistent with President Trump's Ratepayer Protection Pledge.

The Department's filing follows the Trump Administration's call in January 2026 for PJM to adopt market rules that strengthen grid reliability and reduce electricity costs, a call that was joined by governors from all 13 states participating 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 Energy Secretary 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."

Deputy Secretary James P. Danly added, "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 urges PJM to comply promptly with FERC's order and adopt durable market reforms that protect households and businesses.

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