FERC stalls PJM's backstop auction as the Texas audit escalates

About this roundup. A look at national-level developments affecting interconnection queues — FERC, the ISOs, and Congress. Figures below are as reported by the cited sources, retrieved October 1, 2026. Verify with the primary source before relying on anything here.

1. FERC accepts — and suspends — PJM's Reliability Backstop Procurement

What happened. On September 29, FERC issued its order on PJM's proposed Reliability Backstop Procurement (RBP), the one-time auction meant to close the capacity shortfall tied to data-center load growth. The Commission accepted the proposal but suspended it for five months, setting an effective date of February 28, 2027, subject to refund and further proceedings. PJM cancelled the September 30 bid opening; all previously communicated RBP milestones are under review. PJM will provide an administrative update at the October 7 Market Implementation Committee meeting.

Sources conflict. Our Oct 1 digest, citing energynews.biz, reported that the backstop procurement ran September 30 – October 21 before a FERC hold. This roundup's source, PJM Inside Lines on the September 29 order, says the September 30 bid opening was cancelled. Both posts carry this note until it is resolved.

The dispute. FERC ordered a paper hearing on three issues — cost allocation, collateral requirements, and transmission-owner exit rules — while inviting PJM to refile and shorten the delay.

The numbers behind it. PJM's 2028/2029 Base Residual Auction fell 6,831 MW short of the reliability requirement; only 525 MW of new generation and uprates cleared, at $325/MW-day (the FERC-approved cap). FERC docket: ER26-3380-000 (filed July 31).

Why it matters for the queues. The backstop was the near-term bridge for the same load growth the interconnection queues are trying to price. A five-month suspension with cost allocation unresolved keeps the "who pays" question open into 2027.

2. PJM opens its annual large-load review

What happened. On September 29 or 30 (see note), PJM began its annual review of proposed large-load adjustments to the 2027 Long-Term Load Forecast. About twelve utilities — including Dominion Energy, NOVEC, FirstEnergy, and Duke — presented proposals to the Load Analysis Subcommittee. PJM retained Charles River Associates as independent consultant to assess data-center demand trends; CRA presents its findings in October. PJM will share its final load adjustment in November; the 2027 forecast publishes in January.

Why it matters. This is the vetting step that decides which large loads count as firm in planning and capacity assumptions — the same firm/non-firm distinction that cut near-term load in the 2026 forecast.

Sources differ on the date. This roundup's draft dated the kickoff September 30, the day Reuters reported it. PJM's own Inside Lines announcement, cited in the Oct 1 digest, puts the utility presentations on September 29.

Full timeline and sources: Oct 1 Scout digest.

3. Texas audit of the ERCOT queue keeps escalating

The sequence.

• Aug 3: Gov. Abbott orders the PUCT and ERCOT to audit every data center in the interconnection queue.
• Sep 9: ERCOT begins verification RFIs for conditionally included Batch Zero loads — ten business days, notarized attestations; failure can mean exclusion from the queue.
• Sep 14: Abbott directs the Texas Water Development Board to run water-use surveys, with criminal penalties for non-response.
• Sep 18: PUCT files its final SB 6 rule: financial commitments for new loads at or above 75 MW.
• Sep 21: Abbott orders TCEQ to halt all data-center permits pending completion of the ERCOT/TWDB audits.

Sources conflict. A ten-business-day window from September 9 would close around September 23. The Oct 1 digest, citing Beveridge & Diamond, gives a response deadline of 5 p.m. CT, October 12. These may be separate RFI rounds; we have not resolved it.

Scale. The queue holds 1,800+ projects seeking 474+ GW — more than five times ERCOT's record peak demand.

Watch: October 19 TCEQ compliance reporting deadline.

Full timeline, the final PUCT rule, and sources: Oct 1 Scout digest.

4. Congress: data-center cost bill blocked; permitting deal struck

Ratepayer Protection Act — blocked. The Senate failed to advance the bill 57–43 on September 30, short of the 60 votes needed for cloture. It would have required state utility regulators to consider making large loads cover the incremental grid costs of serving them. The House had passed it 417–3 on September 16. Four Democrats (Klobuchar, Ossoff, Warnock, Hassan) voted to advance; Schumer called the bill toothless and Democrats want mandatory — not voluntary — cost responsibility (Heinrich's GRID Savings Act would require it).

Permitting reform — deal, no vote yet. Also on September 30, bipartisan senators announced a deal to overhaul federal permitting for transmission lines, data centers, mines, and energy projects — but no vote until after the November 3 midterms. The White House supports it.

Why it matters. Both bills decide who pays for the grid buildout the queues imply. Neither is law.

What to watch

• Oct 7: PJM Market Implementation Committee — RBP administrative update
• October: Charles River Associates findings presented to PJM
• Oct 19: TCEQ compliance reporting deadline (Texas audit)
• November: PJM final large-load adjustment; post-midterm permitting vote
• Feb 28, 2027: FERC-suspended RBP effective date (unless PJM refiles sooner)

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Sources (all retrieved October 1, 2026): PJM Inside Lines, "FERC Accepts PJM Reliability Backstop Proposal" (Sept 29 order); Reuters, "Largest US grid operator PJM begins annual review of proposed large load adjustments" (Sept 30); Troutman Pepper Locke, White & Case, Bracewell (Texas audit sequence); USA Today, CNN, dig.watch (Senate 57–43 vote, Sept 30); Reuters via LA Post (permitting deal, Sept 30).