PJM Interconnection is asking federal regulators to approve a temporary extension of capacity auction price limits and a new expedited queue for large load customers, part of its broader effort to address new rules for hyperscalers.

The grid operator filed the proposals with the Federal Energy Regulatory Commission (FERC) on February 27, seeking approval to extend the existing price collar for two additional capacity auction years, and to create a faster interconnection path for data centers bringing their own generation.

Under the proposal, PJM would keep the current capacity auction cap at roughly USD 325/MW-day of unforced capacity and set a floor of about USD 175/MW-day for the 2028/2029 and 2029/2030 delivery year auctions. Without the collar, the price cap for the next auction could reach about USD 550/MW-day, the grid operator said in the filing.

PJM said in a statement that the temporary limits are designed to provide more predictable outcomes for customers while it evaluates structural changes to its wholesale market. The change comes after PJM recorded its third record-breaking auction in a row in December 2025. When prices were pulled for the 2027/2028 delivery year, the auction cleared at USD 333/MW-day — hitting the FERC-approved price cap.

By comparison, the 2024 auction yielded USD 269/MW-day, which set a new record at the time.

The expedited interconnection track would allow certain large generation projects, like those able to deliver at least 250 MW of unforced capacity and backed by state siting approval, to move more quickly through PJM’s interconnection queue. The initiative would allow up to 10 projects per year for two years and run parallel to the traditional interconnection process. The grid operator wants to process applications so they can reach commercial operation within three years.

The applications selected for the queue have to have state support and the ability to reach commercial operation within three years, while data centers that do not bring their own generation could still connect to the grid but face curtailment during emergencies.

The expedited queue mirrors that of the queue that PJM pitched during the Critical Issue Fast Path process over large load additions, though the plan was among a dozen proposals voted down by stakeholders.

After the 2024 record-setting auction, Pennsylvania Governor Josh Shapiro took legal action against PJM. In January 2025, his administration reached a settlement that implemented the price cap at USD 333/MW-day. Without that cap, prices could have been as high as USD 530/MW-day, according to PJM modeling presented in filings.

Shapiro has been outspoken about PJM’s price increases and the policies he’d like to see changed to fix it. He was also part of a bipartisan group of governors at the White House in January with senior Trump administration officials. The group signed a statement of principles that outlines potential changes to how PJM handles hyperscale customers.

Prior to PJM’s latest proposal to FERC, Shapiro urged PJM to extend the price collar as the grid operator undertakes a broader review of its market rules. In a filing earlier this year, the governor said maintaining the price ceiling and floor could help shield consumers from steep increases while PJM launches these new initiatives.

PJM officials say the price collar is meant to be temporary and will remain in place only while the organization implements additional reforms to its queues.

If approved by FERC, the proposed changes would take effect ahead of the next capacity auction, which is scheduled to begin on June 30.