PEG · 10-Q · 2026Q3 · Full report

Capacity Market and Load Growth

PUBLIC SERVICE ENTERPRISE GROUP INC · 2026-11-02 · Importance 40 · Surprise 42

PJM filed in July 2026 for FERC approval of a Reliability Backstop Procurement to secure 15-year commitments from new generation matching the 2028/2029 delivery-year reliability shortfall; after FERC’s September order, PJM submitted a revised filing in late October seeking approval by January 29, 2027, and plans an auction for March 1, 2027 if approved. FERC rejected in October 2026 the principal components of PJM’s proposal to curtail new large-load customers, including data centers, during peak demand. Separately, FERC’s June 2026 order directed RTOs and ISOs, including PJM, to establish rules for future large-load connections, including study processes and allocation of transmission costs; PSEG says the outcomes and business impacts remain uncertain.

Key facts

• PJM filed in July 2026 for approval of a one-time Reliability Backstop Procurement to secure 15-year commitments from new eligible generation matching the 2028/2029 delivery-year reliability shortfall.
• At the end of October 2026, PJM made a revised RBP filing seeking FERC approval by January 29, 2027, and, assuming approval, planned an auction for March 1, 2027.
• In June 2026, FERC directed all RTOs/ISOs, including PJM, to establish rules for future large-load connections, including study procedures and transmission cost responsibility; PSEG cannot predict the outcome or business impact.
• FERC rejected in October 2026 the principal components of PJM's proposed rules allowing curtailment of new large-load customers, including data centers, during peak demand absent committed new generation.
• PSEG Power's nine-month 2026 capacity revenue increased $134 million, primarily due to higher capacity prices.