On January 29, 2026, FERC accepted PJM Interconnection, L.L.C.’s (PJM) revisions to its Open Access Transmission Tariff (Tariff) to create a separate, fast‑track interconnection process for “Replacement Generation Resources” that assume Capacity Interconnection Rights (CIRs) from retiring generators. The new process is intended to bring replacement capacity online more quickly, limit how long CIRs sit unused, and run in parallel with PJM’s interconnection queue.

Before these changes, PJM evaluated replacement generation using the same interconnection procedures that apply to new generation resources, with projects entering the main queue and undergoing clustered system impact and facilities studies. In early 2025, PJM proposed modifying the process for transferring CIRs from deactivating generation resources to Replacement Generation Resources by proposing a separate process for Replacement Generation Interconnection Service. However, FERC rejected that proposal in August 2025, citing concerns that the structure allowed effectively open-ended extensions of commercial operation dates and could leave CIRs and associated transmission capability idle for extended periods. FERC also questioned whether the earlier proposal sufficiently limited project modifications and justified special treatment for certain resource types.

On October 31, 2025, PJM proposed creating a separate “Replacement Generation Interconnection” process for resources that assume CIRs from retiring units, subject to strict eligibility and timing requirements. To qualify, the replacement resource must interconnect at the same substation and at the same voltage level as the retiring resource, and it cannot exceed the retiring unit’s maximum output. Interconnection customers must submit a Replacement Generation Interconnection Service Request within one year of the retiring unit’s Deactivation Date and identify a planned in-service date that generally is no later than three years after that Deactivation Date or four years after the replacement request, as applicable. PJM also proposed heightened readiness requirements, including demonstrating site control, fuel and water supply arrangements, necessary rights‑of‑way, and providing a critical path construction schedule supported by an officer attestation, as well as limiting project modification opportunities and milestone extensions (including a cap of three years beyond the planned in‑service date and extensions only for delays outside the developer’s control).

FERC determined that PJM’s proposed replacement generation interconnection process is just and reasonable and not unduly discriminatory or preferential, and therefore accepted PJM’s Tariff revisions. FERC concluded that replacement resources using existing CIRs at the same (or electrically equivalent) point of interconnection are not similarly situated to new generation entering PJM’s interconnection queue, and that processing those replacement projects in a separate, more streamlined interconnection process does not constitute impermissible “queue jumping.” FERC found that the new process should promote more efficient use of existing transmission infrastructure, help align replacement capacity with retiring units, and support reliability. FERC also found that PJM’s tighter timing rules—particularly the three-year cap on extensions beyond the planned in-service date, the elimination of automatic extensions, the heightened readiness requirements, and the limited opportunity to modify projects that cause adverse system impacts—adequately address the Commission’s prior concerns about open-ended commercial operation date extensions and speculative projects.

FERC’s order accepting PJM’s replacement generation process revisions, issued in Docket No. ER26‑403‑001 is available here.