PJM IPS Meeting Summary 06/26/2026
1. PJM Interconnection Process Background
PJM held an Interconnection Process Subcommittee meeting on June 26, 2026 to provide updates on active interconnection process items. The meeting focused on Transition Cycle 2, Cycle 01 application review, Interim Deliverability, market participation options for Mixed Technology Facilities, NextGen updates, and reminders for Decision Point 2.
These topics are important because PJM is currently managing multiple interconnection activities at the same time. Transition Cycle 2 is moving from Phase II System Impact Study results into Decision Point 2 and Phase III studies. Cycle 01 application review is ongoing, and PJM is preparing for future model posting, scoping meetings, and application milestones.
The meeting also focused on practical developer actions. Project developers need to understand what must be completed in NextGen, how mixed-technology projects can participate in PJM markets, and whether interim deliverability options may help projects move forward before all final upgrades are completed.
2. PJM Interconnection Process Updates
The most immediate update was related to Transition Cycle 2. PJM stated that 270 projects were studied in the Phase II System Impact Study. Phase II SIS reports were posted on June 5, 2026, and agreement negotiation for accelerated projects began on June 8, 2026.
Decision Point 2 began on June 8 and runs through July 7, 2026. During DP2, developers must make their required elections and submit allowable modifications through NextGen. This is a major milestone because projects must satisfy tariff requirements to continue into Phase III.
Phase III SIS is scheduled to begin on July 8, 2026. This phase will include a model update reflecting projects withdrawn at DP2. PJM will then retool load flow, short-circuit, and stability results. PSCAD/EMT studies will also be performed for selected projects in weak-grid areas. If affected-system results are available, PJM will incorporate those results.
2.1 Cycle Schedule Update
PJM’s Cycle Schedule Update covered Transition Cycle 2, the 2027/2028 Interim Deliverability Study, and Cycle 01 application review.
For Cycle 01, PJM reported that, as of May 15, 2026, there were 829 applications under review. This included 16 Long-Term Firm submissions, 2 Merchant Transmission submissions, and 811 Generator Interconnection submissions. The generator interconnection applications represented approximately 220,227 MWE, 210,694 MWC, and 289,856 MFO.
PJM completed Round 1 deficiency reviews. Developer deficiency cures and PJM Round 2 reviews were still in progress. PJM stated that the final number of New Service Requests to be studied in Cycle 01 Phase I will be made public after applications are formally reviewed and approved in NextGen.
PJM expects Round 2 reviews to finish near the beginning of Q3. Scoping meetings are also expected to begin, although some may be waived depending on project developer, Transmission Owner, and PJM needs. Cycle 01 model posting is targeted for Q3, with the exact date still to be announced.
2.2 Interim Deliverability Study
PJM also discussed the 2027/2028 Interim Deliverability Study. This study evaluates whether a project can reliably deliver MW before its original base case study year or before completion of required Network Upgrades and/or contingent facilities listed in its GIA or ISA.
The application deadline for the 2027/2028 Interim Study is June 30, 2026. PJM expects results to be available in October 2026.
This study is important for developers whose projects may be ready before all required upgrades are completed. It can help determine whether some level of deliverability is available on an interim basis.
2.3 Market Participation Options for Mixed Technology Facilities
Another major topic was market participation for Mixed Technology Facilities. PJM defined a Mixed Technology Facility as a facility with multiple technology types behind the same point of interconnection. These facilities may be created through the regular queue cycle, surplus interconnection service, or other interconnection processes.
PJM explained that each component of a Mixed Technology Facility can participate either as an independent co-located resource or as part of a hybrid resource.
Under the co-located resource approach, each component is treated as a separate market unit and must be able to operate independently. Under the hybrid approach, the components operate together as one market unit. A hybrid resource may be closed-loop or open-loop. An open-loop hybrid resource includes storage that charges from the grid.
If the facility components can operate independently, the market participant may choose either the co-located or hybrid model. However, if there is significant interaction between components, such as storage that cannot physically charge from the grid, the facility may be required to participate as a hybrid resource only.
New resources must inform PJM of their desired participation model at least six months before the planned in-service date by contacting Member Relations. For capacity resources, classification elections must follow existing capacity-market deadlines. The same classification must be used in both capacity and energy markets for the applicable delivery year.
2.4 Mixed Technology Facility Use Cases
PJM presented several examples.
For solar plus storage, the resources may participate as co-located resources if they are independent, or as a hybrid resource if operated together. If the original solar resource is a capacity resource, the battery may participate as energy-only or form a hybrid resource with the solar. However, the battery cannot separately provide capacity as a co-located resource.
For wind plus solar, the new solar component may participate as energy-only or form a hybrid with the original capacity resource, but it cannot separately provide capacity as a co-located resource.
For gas plus battery storage, the battery may participate as energy-only or as part of a hybrid resource with the gas unit. For gas plus solar, PJM indicated that the configuration can participate as co-located resources only.
A key takeaway is that original CIRs are not considered “unused.” If the original resource is online or has cleared in an auction, it has a capacity must-offer obligation. If it is not online yet, its CIRs are not yet effective. In all cases, the site MFO cannot be exceeded in real time and must be managed by the market participant.
2.5 NextGen Updates and DP2 Reminders
PJM also reviewed several NextGen updates. Change history is now available by page within the application, allowing users to see saved changes and who made them. PJM is also tracking affected entities on the project summary page.
PJM can now edit certain fields within an application. If PJM makes a change, the developer will receive an email explaining what changed and why. If the developer disagrees, they should contact the project manager.
For DP2, PJM emphasized that developers cannot edit data until the DP2 election is made. The “accelerate to final agreement” option will only appear if the project is eligible. PJM also limited document uploads during DP2. If a document must be uploaded, the developer should coordinate with the project manager.
All sections must be saved and validated before submission. During a deficiency period, all deficiencies must be commented on, and all sections must again be saved and validated before the submit button becomes available.
PJM also noted a known issue where nearly all TC2 projects are receiving an insufficient funds warning for the TC2 study deposit. Developers may proceed with DP2 submissions despite this warning. However, warnings related to other financial obligations may still be valid and should not be ignored.
2.6 What Next?
The next IPS meeting is scheduled for July 27, 2026. PJM expects to post an updated Cycle 01 schedule before that meeting. TC2 Phase III begins July 8, Cycle 01 model posting is targeted for Q3, and Interim Deliverability results are expected in October 2026.
PJM also provided expected NextGen timelines. Replacement Generation went live in April 2026. The Expedited Interconnection Track is expected in July 2026. Surplus applications are expected in August or September 2026. Upgrade applications remain to be determined. Until then, developers should continue using Queue Point for upgrade applications.
3. Challenges with the Current Interconnection Process
Several challenges remain.
First, developers must manage overlapping deadlines. TC2 DP2 closes July 7, Phase III begins July 8, Interim Deliverability applications are due June 30, and Cycle 01 deficiency reviews are still active.
Second, Mixed Technology Facilities create market-participation complexity. Developers must decide whether components should be co-located or hybrid, understand capacity obligations, and ensure the site MFO is not exceeded in real time.
Third, NextGen improvements are helpful, but developers must carefully follow validation, deficiency, submission, and project-manager coordination steps.
Overall, the June 26 IPS meeting shows PJM continuing to move toward a more standardized and digital interconnection process. For developers, the key takeaway is to monitor NextGen requirements closely, understand market-participation classifications early, and track interim deliverability options before they affect project timing, capacity treatment, or commercial operation.
If you are developing generation, storage, hybrid, co-located, or merchant transmission projects in PJM, ZEG can help evaluate interconnection milestones, DP2 requirements, market participation options, interim deliverability exposure, and NextGen submission risks before they affect project schedule or economics. Contact our team to get started.
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