PSEG offers data center supply proposals in PJM’s bilateral contracting process

PSEG's power generation arm is looking to supply electricity to data centers through a new process run by PJM Interconnection, the grid operator for New Jersey and much of the mid-Atlantic and Midwest. PJM is setting up a system to line up power supply for the huge amount of electricity data centers are expected to need, including a one-time auction starting September 30 and a separate process matching power suppliers directly with data center projects through long-term contracts. PSEG's CEO said the company sees an opportunity here but gave few specifics, noting PJM's plans, including its load forecasts, are still changing.

This matters to homeowners in PJM's territory because data centers are a major driver of rising electricity demand, and how utilities and grid operators handle that demand can affect what everyone pays. In a related sign of shifting demand, PJM just cut its load forecast for part of northern Illinois, reflecting a scaled-back data center pipeline there.

Separately, New Jersey regulators released a report exploring possible changes to how utilities are regulated in the state, including ideas like multiyear rate plans and performance-based rates tied to results rather than just infrastructure spending. PSEG said it's encouraged by the report, which could eventually influence how utility costs and incentives are structured for New Jersey customers. The company is also sticking with its plan to spend $24 billion to $28 billion on infrastructure through 2030, mostly on replacing aging equipment, with some room for added spending on nuclear, transmission, and connecting new solar and battery projects to the grid.