PJM TEAC 12.08.25: RTEP Evaluation, Supplemental Needs, and Emerging Cost Allocation Signals

January 5, 2026

PJM TEAC 12.08.25: RTEP Evaluation, Supplemental Needs, and Emerging Cost Allocation Signals

The PJM Transmission Expansion Advisory Committee (TEAC) met on December 8 to continue RTEP evaluation progress, review supplemental transmission needs, and discuss emerging implications for cost allocation as PJM confronts accelerating load growth and system transformation. The meeting highlighted how traditional planning frameworks are being stretched by data-center expansion, electrification trends, and compressed development timelines.

Across agenda items, stakeholders emphasized that transmission planning is becoming more capital-intensive, more interdependent, and more consequential for interconnection feasibility and customer cost exposure.

RTEP Evaluation Progress

PJM provided updates on ongoing RTEP project evaluation, focusing on thermal performance, voltage criteria, and constructability considerations as analyses advance toward Board recommendations. Staff noted that increased attention is being paid to constructability and implementation feasibility earlier in the planning process, reflecting lessons learned from recent large-scale transmission projects.

Stakeholders discussed how interactions among multiple upgrades, driven by load growth, generator retirements, and resource additions, are increasing analytical complexity. As projects grow in size and scope, evaluation timelines are extending, and solution spaces are narrowing. PJM emphasized that this front-loaded rigor is intended to reduce downstream execution risk, even if it constrains optionality.

Supplemental Transmission Needs

Transmission Owners presented updates on supplemental transmission needs related to asset condition, reliability risks, and localized load growth. While these projects fall outside baseline RTEP, they increasingly intersect with RTEP-driven upgrades, raising questions about sequencing, overlap, and cost responsibility.

Stakeholders noted that the boundary between baseline and supplemental needs is becoming less distinct as system stress intensifies. Load-driven upgrades often serve both local and regional reliability objectives, complicating classification and stakeholder understanding. PJM acknowledged the issue and emphasized the need for improved coordination and transparency to avoid duplicative investments.

Load Growth and Financial Implications

Data-center growth and broader electrification trends were repeatedly cited as key drivers reshaping PJM’s planning environment. Large, flat-profile loads are compressing planning timelines and increasing the scale of required transmission investments. Stakeholders expressed concern that traditional cost-allocation frameworks may struggle to keep pace with the speed and concentration of new demand.

Participants discussed how accelerating capital requirements could shift financial exposure toward certain customer classes or regions, particularly where load growth is highly localized. While no immediate policy changes were proposed, the discussion signaled that cost allocation will remain a central issue as RTEP portfolios expand.

Interconnection and Planning Interdependencies

Stakeholders emphasized that RTEP outcomes increasingly shape interconnection feasibility and timing. Transmission upgrades identified through RTEP can materially affect queue positions, upgrade costs, and project schedules. Conversely, uncertainty in the interconnection queue complicates planning assumptions about future resource availability.

PJM acknowledged these interdependencies, noting that closer alignment between planning and interconnection processes is essential as load growth accelerates. The discussion reinforced that transmission planning decisions are no longer abstract system exercises but have direct commercial implications for developers and large-load customers.

Looking Ahead to 2026

PJM outlined upcoming milestones for RTEP evaluation and continued stakeholder engagement heading into 2026. As planning cycles compress and project scale increases, PJM emphasized the importance of sustained stakeholder input and early engagement to surface concerns before decisions are finalized.

The forward-looking discussion underscored that PJM’s planning framework is entering a period of heightened scrutiny, where assumptions around load, timing, and cost allocation will play an outsized role in shaping outcomes.

At, Zero Emission Grid, we help clients interpret TEAC outcomes and anticipate how transmission investments affect interconnection feasibility, cost exposure, and project timing. By translating RTEP developments into actionable insight, ZEG supports informed decision-making in an increasingly capital-intensive PJM planning landscape. Contact us to get started today.

References

PJM Interconnection Transmission Expansion Advisory Committee (TEAC):

PJM TEAC 12.08.25: RTEP Evaluation, Supplemental Needs, and Emerging Cost Allocation Signals