Stu Bresler, Executive Vice President, Market Services and Strategy, testified Nov. 1 before the Federal Energy Regulatory Commission to share PJM’s perspectives on the surging growth in requests by data centers and other large electricity consumers to locate their facilities next to the power sources they will draw from.
Bresler’s appearance before the “Commissioner-led Technical Conference Regarding Large Loads Co-Located at Generating Facilities” took place during the first of three conference panels of the day to frame and inform FERC consideration of emerging issues in this area.
The reliable operation of the electrical system remains PJM’s highest priority, Bresler said in his submitted testimony (PDF). With that in mind, PJM has approached the issue of interconnection requests for the colocation of large load customers with generation resources with a focus on three primary areas: resource adequacy (whether it will help or hurt the ability to serve energy demand for the region), reliable operations and how costs are allocated among the various parties.
Bresler reiterated a point PJM has been making for some time – that these concerns are best addressed through established practices when such loads are in front of the meter, meaning directly connected with the larger grid. This is called Network Load. This allows for incorporation of such loads into the PJM Load Forecast; system transmission studies and established cost allocation methods for transmission services, energy and ancillary services.
Unprecedented demand growth in the region PJM serves is already outpacing the addition of new available capacity, and PJM is projecting a generation shortfall by decade’s end, Bresler noted. Continued growth in large, behind-the-meter, off-system loads reduces the availability of traditional baseload resources, a pool already diminishing at a rate faster than replacement generation is coming online.
Seeking Guidance
PJM urged FERC to consider opportunities to issue industry guidance for emerging issues:
Address the rapid development pace of large, behind-the-meter, colocated load, including an
exploration of whether any conditions can or should be placed on the obligation of a transmission
provider to serve such load given grid impacts.
Consider alternative transmission service to behind-the-meter colocated load, such as interim non-firm service coupled with obligation for required system enhancements for eventual designation as Network Load.
Define principles of requirements to pay for ancillary and transmission services.
Require interconnection service agreements to include project-specific details, including but not limited to generator type, capacity factor, potential for back-up supply, load particulars and more relevant information specific to markets, operations and planning.
Clarify jurisdictional roles between FERC and states.