US Power & Utilities: Watt’s Happening at PJM?

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US Power & Utilities: Watt’s Happening at PJM?

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US Power & Utilities

Watt’s Happening at PJM?

Industry Overview

C&M Fails to Pass; DCC/EDC RBP Proposal Approved 30 June 2026

PJM concluded its final Critical Issue Fast Path (CIFP) meeting on the Reliability Equity

Backstop Procurement (RBP) and Connect & Manage (C&M) today, followed by a United States

members committee vote. Stakeholders approved the Joint EDCs and Data Center Utilities

Coalition (DCC) RBP proposals, while no C&M proposal reached enough support to reach Ross Fowler, CFA

a consensus. As a result, the Board will likely put forth the final proposal with an Research Analyst

estimated FERC filing by July 10. BofAS+1 646 855 1506

ross.fowler@bofa.com

RBP is a Similar Framework, Greater Focus on LSEs Rinny Singh

While the DCC/EDC proposal retains many elements of PJM's Reliability Backstop ResearchBofAS Analyst

Procurement (RBP) framework, it shifts greater responsibility to large loads and their +1 646 855 5729

rinny.singh@bofa.com

serving LSEs. Rather than spreading procurement costs and default risks across

F. Paul Cole

participating LSEs, the approved proposal uses a registry-based structure that directly Research Analyst

assigns procurement obligations, collateral requirements, and default exposure to the BofAS

+1 646 743 2122

specific loads and LSEs participating in the program. In addition, procurement targets paul.cole2@bofa.com

are established through voluntary LSE subscriptions rather than a PJM-determined Nicolas Woods

capacity shortfall, further reinforcing a beneficiary-pays approach. We highlight the key Research Analyst BofAS

differences (Exhibit 1) and provide additional detail throughout the note. +1 646 556 4179

nicolas.woods_barron@bofa.com