Debate over adding data centers to regional energy grid continues in federal filings

RICHMOND, Va. (WRIC) -- The ongoing dispute between multiple agencies and organizations over the addition of large data centers to the regional energy grid persists, with several filings submitted to the federal government since November.

On Nov. 25, Monitoring Analytics, LLC — an independent watchdog — filed a complaint with the Federal Energy Regulatory Commission (FERC) against the regional energy grid operator PJM Interconnection, LLC.

PJM coordinates the movement of electricity between 13 states, including Virginia, as well as Washington, D.C., serving roughly 67 million people throughout the region.

In the complaint, Monitoring Analytics stated that PJM is proposing to connect large new data centers to the energy grid, which it said cannot reliably receive energy under the grid’s current capacity.

The watchdog further said that if these data centers were connected at the current capacity, blackouts would occur at those data centers or other customers at times, meaning PJM would not be serving customers the reliable, economical energy it is charged with facilitating.

The complaint urged FERC to rule that PJM could only connect large new data centers to the grid only when it has the reliable energy capacity to do so.

Following the initial complaint, on Dec. 15, PJM submitted an answer to the complaint with FERC that urged its dismissal because the company's board was actively considering possible solutions to increase energy reliability, though no option had yet been selected as of the filing.

Days later, on Dec. 18, the Organization of PJM States Inc. (OPSI) -- comprised of representatives of each jurisdiction's utility regulator agencies, including the Virginia State Corporation Commission -- filed a response with FERC to the same initial complaint.

OPSI said in the response that it disagrees with Monitoring Analytics' approach of delaying data centers until reliability is established, and said other solutions decided by PJM's board would be more appropriate.

OPSI further stated that FERC ruling in the way the watchdog is asking would cause jurisdictional disputes between federal and state authorities.

Also on Dec. 18, in a separate case, FERC directed PJM to establish transparent rules to facilitate the service of data centers that are co-located with generating facilities, a move meant to "safeguard reliability and protect consumers" in the region.

One day later, on Dec. 19, Monitoring Analytics, LLC, filed a response with FERC to PJM's answer to the complaint.

The watchdog claimed in the response filing that PJM's Dec. 15 answer did not address the main point of the complaint, which centers on concerns regarding energy reliability and cost impacts on customers if large data centers were connected to the grid.

"PJM never addresses the core issue in the complaint which is whether PJM management believes that PJM is required to interconnect load that it cannot serve reliably," Monitoring Analytics said in the response.

It's unclear when FERC will respond to the complaint.