On June 9, 2026, the Federal Energy Regulatory Commission (FERC) approved PJM Interconnection’s proposal to create an Expedited Interconnection Track (EIT), a temporary fast-lane process for connecting large, shovel-ready generation projects to the grid. The order, issued under Docket ER26-1563, takes effect July 31, 2026, and is scheduled to end on December 31, 2027. The decision is the latest step in PJM’s broader effort to close the gap between accelerating electricity demand, driven largely by data centers, and a generation interconnection queue that has struggled to keep pace.
What the Expedited Interconnection Track (EIT) Requires
Under the EIT, PJM will review up to 10 interconnection requests per calendar year for new or updated generation resources. To qualify, a project must provide at least 250 megawatts of unforced capacity, demonstrate full site control, and secure a commitment from the relevant state’s primary siting authority. Finally, the project must be capable of reaching commercial operation within three years of submitting its application.
Applications are accepted on a rolling basis until the annual cap is reached. PJM expects qualifying projects to execute a signed Generation Interconnection Agreement (GIA) within roughly 10 months, compared with the one- to two-year timeline typical of PJM’s standard queue. Developers must also post a $500,000 study deposit and a $15,000-per-megawatt readiness deposit and must fund 100% of any required network upgrades.
The process is technology-neutral, open to natural gas, nuclear, battery storage, and renewable projects alike, provided they meet the readiness and size thresholds.
Why PJM Pursued This Change
In recent years, the region’s interconnection queue has become congested with thousands of megawatts of projects sitting in multi-year study backlogs, even as demand from data centers and other large electricity users has grown sharply. PJM has warned of a potential resource adequacy shortfall beginning as early as 2026 if new generation does not come online quickly enough.
“FERC’s approval of PJM’s Expedited Interconnection Track creates an important pathway for bringing qualified, shovel-ready generation projects of any kind to connect onto the grid within the next three years,” said PJM President and CEO David Mills. The Expedited Interconnection Track also creates a clear opportunity for states to advance projects critical to reliability and economic growth by supporting them through the siting, permitting, and development processes.
FERC’s Reasoning and the Objections Rejected
In its order, FERC found that the EIT would help address PJM’s near-term resource adequacy needs by establishing a limited, time-bound process for resources capable of quickly bringing significant capacity online. The commission concluded that the eligibility criteria were appropriately tailored to that goal.
The proposal faced substantial opposition during the proceeding, with protests filed by clean energy trade groups, the Illinois Commerce Commission, the New Jersey Bureau of Public Utilities, independent power producer LS Power, Vistra Corp., and several community organizations.
Vistra argued the readiness requirements would favor projects affiliated with load-serving entities, such as regulated utilities, over independent power producers. FERC rejected that claim, stating the requirements were “designed to attract ‘shovel-ready’ projects that have the highest probability of successfully proceeding through this limited interconnection process, regardless of whether they are proposed by an independent power producer or affiliated with an LSE.”
FERC also dismissed concerns that the expedited track would delay PJM’s regular interconnection process or leave other customers facing higher network upgrade costs. Commissioner David Rosner, in a concurring statement, underscored the role states will need to fulfill: “Public utility commissioners, governors’ offices, and state legislatures are all necessary partners in ensuring that energy infrastructure is built at the pace the region needs.”
Part of a Broader Pattern of Reform
The EIT is PJM’s second major expedited interconnection mechanism in 18 months. In February 2025, FERC approved PJM’s Reliability Resource Initiative (RRI). This one-time fast-track window selected 51 projects from 94 applicants, advancing more than 9,300 megawatts of capacity through what PJM called Transition Cycle #2.
PJM estimated the RRI could bring roughly 10 gigawatts online up to 18 months earlier than the standard process would allow, with those projects expected to reach signed agreements by January 2027.
PJM has paired these initiatives with other reforms, including the first completed cycle of its tariff-based reformed interconnection process, along with faster transfer rules for Capacity Interconnection Rights (CIR), a new provisional interconnection service allowing generators to begin operating before all upgrades are finished, and revised Surplus Interconnection Service (SIS) rules that supporting trade groups say could unlock more than 26 gigawatts of additional accredited capacity for the 2026/2027 delivery year.
Conclusion
FERC’s approval of PJM’s Expedited Interconnection Track reflects a deliberately narrow and temporary response to a structural problem: electricity demand is growing faster than new generation can be interconnected to the grid. Capped at 10 projects annually and set to expire at the end of 2027, the EIT is not a permanent overhaul of PJM’s interconnection process but rather one component of a broader, multi-year reform effort that includes the Reliability Resource Initiative, changes to Surplus Interconnection Service, and ongoing queue modernization. Whether this combination of measures proves sufficient to close PJM’s resource adequacy gap will become clearer as the program’s first selected projects move through development over the next two years.
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Disclaimer: Any opinions expressed in this blog do not necessarily reflect the opinions of Certrec. This content is meant for informational purposes only.
