PJM’s member stakeholders voted down a plan Nov. 19 that would have provided key incentives for data centers and could reduce energy costs for consumers. 

The proposals would have given large data centers the option of providing their own power generation, rather than drawing fully from the utility grid, in exchange for incentives. It could have helped in moderating energy costs by relieving stress on the grid. 

The proposals failed with 31 members supporting it and 67 members opposed. The status quo will remain, which could lead to an increase in electric bills. 

PJM’s system is facing increasing strain as data centers proliferate, raising reliability concerns and driving higher costs for all customers. According to PJM’s independent market monitor, the added charges tied to this extra demand are measured in billions.

“The current supply of capacity in PJM is not adequate to meet the demand from large data center loads and will not be adequate in the foreseeable future,” PJM’s independent market monitor wrote. 

Twelve proposals were put forward by data center companies, transmission companies, power companies, utilities, PJM, and more. (RELATED: Virginia to Roll Out Recreational Cannabis Market Under Spanberger)

PJM Chief Executive Manu Asthana said the board will try to get something to the Federal Energy Regulatory Commission by the end of the year.

“There was no winner here,” Asthana said. (RELATED: Arlington County Board Looks To Impose Rent Increase Limit in 2026)

The process generated several promising proposals, some of which were introduced late and need further refinement, according to a PJM spokesperson. 

“This vote is advisory to PJM’s independent Board. The Board can and does expect to act on large load additions to the system and will make its decision known in the next few weeks,” the spokesperson said.