US Power & Utilities: Watt’s happening in PJM (and FERC)?

Research evidence excerpt

US Power & Utilities: Watt’s happening in PJM (and FERC)?

e ultimate structure of the David Rold, CFA Research Analyst

market. As a result, the path forward has become less predictable, even if the need for BofAS

change is broadly agreed upon. +1david.rold@bofa.com646 556 1118

Near-Term Focus: Co-Location Ruling

While the Chair’s commentary introduces uncertainty, it also underscores urgency. We FERC: Federal Energy Regulatory

expect this to carry into FERC’s May open meeting, particularly with respect to the co- Commission

location docket (EL25-49). The key issue remains the implementation timeline for

PJM: PJM Interconnection LLC.Interim Network Integration Transmission Service (NITS), where PJM has proposed a

path to 2029 while IPPs are pushing for a more accelerated timeline of 2026. Given IPP: Independent Power Producer.

Swett’s emphasis on near-term action, we believe FERC is likely to side with IPPs and

pull forward implementation. Establishing clear rules of the road for co-location would CEG: Constellation Energy

reduce uncertainty and enable customers to contract with greater confidence,

VST: Vistra Corp.

supporting incremental deal activity for generators.

TLN: Talen Energy

Generation Needs Favor IPPs, but Noise Will Continue

Swett’s comments on the need for generation and customers’ willingness to pay their

“fair share,” alongside increasing focus on hybrid/co-location solutions, are constructive

for IPPs. Developers with existing sites, queue positions, and equipment availability

appear best positioned to respond in the near term. TLN has 2 GWs, CEG has 5 GWs, and

VST has 4.5 GWs of additional generation available that they have submitted to PJM.

However, despite a constructive end-state, increased regulatory involvement introduces