Related reading:
- FERC urged to reject AEP waiver request for PJM capacity sale (Utility Dive)
The Gist
AEP’s move to dump 750 MW of unneeded capacity into PJM’s auction is a signal of speculative data-center contracting and software-driven over-projection. Utilities locked in supply for AI load that never showed up — and now want out. It exposes how hype has distorted institutional behavior in power.
Key Facts
- Four AEP FRR utilities bought excess capacity, likely for data centers that didn’t materialize.
- They’re seeking a waiver to sell 750 MW into PJM’s Feb. 2026 incremental auction, bypassing power market rules.
- PJM supports the waiver; industry watchdogs oppose it as anti-competitive and precedent-breaking.
- Opponents say AEP wants to arbitrage high capacity prices while bearing no market risk due to cost recovery from ratepayers.
- In the interim, PJM’s 2026 load forecast has been revised down.
Things That Jump Out
1. A visible crack in the AI/data-center hype cycle