FERC accepts PJM backstop power plan but delays it to February 2027

The Federal Energy Regulatory Commission accepted PJM's proposed Reliability Backstop Procurement on Sept. 29 but suspended the measure for five months, setting an effective date of Feb. 28, 2027. The order allows the procurement to move ahead subject to refund and to the outcome of additional proceedings.

PJM had planned to launch the backstop procurement on Sept. 30. The grid operator said it will not proceed on that date, and that every timeline milestone it previously communicated for the procurement will be reviewed and shared with stakeholders at a later date.

What FERC's order does

FERC's order accepts the structure of PJM's Reliability Backstop Procurement while flagging three discrete issues that need further consideration before the procurement can move forward, PJM said in a statement. PJM said the commission "provided a clear path to resolving those issues expeditiously," and that it is reviewing the order and intends to work quickly to address the remaining concerns. "Actual timing is to be determined," PJM said.

Why PJM proposed the backstop

PJM designed the Reliability Backstop Procurement as a one-time, transitional step to secure new eligible capacity, protect resource adequacy, and support the Interim Resource Adequacy Service. The extra time created by the measure is meant to let PJM carry out a wider look at market fundamentals and investment incentives.

The procurement is meant to work alongside a separate process already underway: bilateral contract matchmaking, which pairs new supply resources with new large-load customers through voluntary deals. Only new supply resources can take part in both tracks, and any resource chosen through either one must begin commercial operation no later than June 1, 2032. PJM can let confirmed bilateral supply contracts count against the capacity target in its initial procurement, so the same capacity is not procured twice.

What happens next

PJM will give a brief administrative update on the order at its Market Implementation Committee meeting on Oct. 7, 2026. Revised timeline milestones for the backstop procurement will follow in later stakeholder communications.