PJM Interconnection presented a preliminary $65 million capital budget for 2027 and proposed manual revisions for its regulation market redesign to the Operating Committee on Sept. 10, 2026. The regional transmission organization also reported system performance data from late August and early September, noting emergency dispatch actions taken during high temperatures.
What it means
The proposed budget represents a $10 million increase over expected spending for 2026. Jim Snow attributed part of the increase to the delayed purchase of two parcels around the Audubon headquarters, moving the transaction from 2026 to 2027. The Finance Committee will review the proposal on Sept. 22 and draft a recommendation for the Board of Managers, which is expected to act in October.
The regulation market redesign updates Manual 12: Balancing Operations by adding two products that allow sellers to increase or decrease regulation service alongside the control signal. The Markets and Reliability Committee is scheduled to take a first read on the language at its Sept. 24 meeting, with both committees expected to consider endorsement in October. This phase follows an earlier redesign that replaced split fast- and long-response services with single RegUp and RegDown products, introduced a ramp-limited lost opportunity cost calculator, established a 30-minute clearing period, and reworked performance scoring.
PJM reported system stress during high temperatures between Aug. 31 and Sept. 4. Senior Manager of Dispatch Paul Dajewski stated that PJM successfully requested emergency orders from the U.S. Department of Energy on short notice. These orders allowed the dispatch of large load backup generation and resources limited by environmental permits from Sept. 1 to 5. A hot weather alert was issued on Aug. 31, followed by maximum generation and load management alerts on Sept. 1. Pre-emergency load management was dispatched in BGE, PEP, DOM, AEP, and CE zones on Sept. 1. Transmission loading relief was required on the Conastone-Peach Bottom 500-kV line on Sept. 1 and 2.
Rapidly changing weather conditions caused high load forecast uncertainty, requiring constant operator action. Exports remained high as neighboring regions relied on firm transmission service. August operating metrics showed 10 days where daily peak load deviated from forecast by at least 3%. Senior Engineer Timothy Smoker associated high load forecast errors in August with high thunderstorm activity. The month included one spin event, four shared reserve events, one maximum generation and load management alert, one NERC EEA Level 1 action, and four hot weather alerts. The spin event occurred on Aug. 5, lasting 5 minutes and 26 seconds. Generation response rate during the spin event was 112% of expectations; demand response was 156%. For context on regional grid planning, ISO-NE outlines large load rules, while Constellation Energy buys Rhode Island gas plant highlights ongoing capacity investments.
Key facts
- PJM proposed a $65 million capital budget for 2027, a $10 million increase over expected 2026 spending.
- The budget increase includes delayed land purchases around the Audubon headquarters.
- Manual 12: Balancing Operations revisions add two products for sellers to adjust regulation service alongside control signals.
- Markets and Reliability Committee first read scheduled for Sept. 24; endorsement expected in October.
- Emergency DOE orders allowed dispatch of backup generation from Sept. 1 to 5 during high heat.
- Pre-emergency load management dispatched in BGE, PEP, DOM, AEP, and CE zones on Sept. 1.
- Transmission loading relief required on Conastone-Peach Bottom 500-kV line on Sept. 1 and 2.
- August spin event on Aug. 5 lasted 5 minutes 26 seconds; generation response at 112% of expectations.
Source: PJM Interconnection Operating Committee Briefs, Sept. 10, 2026