➤ Key Highlights
Interconnection rules are tightening. Grid operators are embedding reliability and readiness requirements earlier, reducing speculative queue positions.
Timelines are compressing. One-year processing targets replace multi-year backlogs, forcing faster capital and siting decisions.
Risk is shifting to developers. Cost exposure and certainty now depend on proving load readiness, not just filing applications.
Regulatory scrutiny is increasing. Federal oversight is actively reshaping tariffs, co-location rules, and interconnection obligations.
Large loads are driving reform. Data centers and flexible demand are the catalyst behind structural grid process changes.
PJM’s Board just signaled a major shift in how it’s handling large loads like data centers and the interconnection queue, embedding reliability guardrails and expedited tracks into its planning and market rules rather than letting uncertainty persist. On Jan 16, 2026 the board laid out a package of proposals — from improved load forecasting to new interconnection pathways that let large loads bring their own generation and get studied faster — and plans to file key tariff changes with FERC soon to make these real.
On the regulatory front, FERC has been issuing detailed orders around PJM’s procedures too — directing tariff reforms for co‑located generation and load, new transmission service options, and clearer interconnection obligations so developers and large load customers aren’t left guessing what rules apply. These filings and paper‑hearing requirements extend into early 2026, meaning stakeholders should expect near‑term regulatory activity that could tweak interconnection incentives or risk allocation.
At the same time, MISO has confirmed it will kick off its 2025 Definitive Planning Phase (DPP) cycle on schedule and is pushing toward its goal of a one‑year queue processing cycle — a huge shift from the multi‑year backlogs that have frustrated developers and slowed billions in project commitments. MISO’s focus this cycle is on automation, software enhancements, and targeted tariff improvements that are intended to shave years off traditional timelines.
Underlying both RTOs is the reality that queue backlogs and load growth aren’t theoretical. In ERCOT, more than ~233 GW of large‑load interconnection requests – mostly data centers – are being evaluated, a near‑300 % jump that has grid planners calling for revamped processes and standardization. Meanwhile PJM has already processed a massive ~170 GW of new generation requests since 2023 and is closing out its transition queue as it moves into a new cycle with targeted timelines.
➤ TAKEAWAY
Bottom line: developers should be tracking board‑level reform signals at PJM, queue schedule enforcement at MISO, and FERC’s evolving orders on tariff and interconnection tweaks — because these collectively will shape certainty, risks, timelines, and cost exposure for large loads and generation interconnection over the next 12–24 months.
