Energy Market Update - Sustainability Corner

PJM: PJM Releases Five-Year Corporate Strategy: “Shaping a Powerful Change”

• PJM released its Five-Year Strategy, describing its mandate as "a mission-driven organization that serves the public interest as a FERC-authorized RTO" and stating "Reliability is our North Star."
• The strategy focuses on four priorities:
  • Reliably operate an increasingly dynamic grid – modernize operations for an increasingly complex system and introduce next-generation Control Room technologies, including enhanced deployments of AI and automation that strengthen and accelerate human judgment.
  • Ensure durable market incentives and state alignment – seek alignment among states, members, and PJM on resource adequacy, collaborating with states and members and building on PJM's Powering Reliability Through Market Design white paper to create durable, investable market signals and ensure needed resources are built.
  • Proactively adapt planning processes – deliver accelerated transmission and interconnection processes, supported by next-generation technologies and streamlined processes to meet speed for infrastructure build-out.
  • Improve decision-making efficiency – accelerate the pace of decision-making for PJM and members, noting the existing stakeholder process was built for a different era.
• Many of these activities build on work already underway, but expectations of completion vary between months and years.
• PJM is currently working to develop a stakeholder priority road map to prioritize strategy initiatives and other member priorities.

PJM: Pennsylvania Governor Signs Executive Order on Data Centers

• Reliability
  • GRID standards require developers to pay the full cost of new electricity generation, transmission, distribution, and other infrastructure needed to power their project, without shifting costs to Pennsylvania households and businesses.
  • The EO directs the Governor's Special Counsel to advocate before the Public Utility Commission for new state rules implementing PJM's proposed mandatory curtailment program for large loads (Interim Resource Adequacy Service), which would curtail data centers before any other customers and before demand response if the data center does not bring sufficient incremental capacity to meet its full demand.
  • The EO includes requirements that align state policy with PJM's recently proposed Reliability Backstop Auction and curtailment framework.
• Environmental
  • GRID standards require developers to meet the highest standards for environmental protection, including strict water conservation requirements.
  • The original May GRID framework offered faster permitting and tax incentives to data centers that met enhanced transparency and environmental standards; under the EO these standards are now mandatory, with noncompliance resulting in significant delays to state permits.
  • AI data center proposals are removed from the Fast Track permitting process, and local approvals must be secured before state permits are issued.

PJM: Virginia Announces Post-Reentry RGGI Allowance Cap Trajectory: RGGI Issues Special Report on Allowance Supply and Demand

• On 8/18, the Virginia Department of Environmental Quality told the State Air Pollution Control Board it anticipates a 2027 RGGI allowance budget of ~20.4 million allowances plus ~6.8 million Cost Containment Reserve allowances — providing clarity on allowance supply beyond 2026 following Virginia's July reentry into the program.
• On 8/21, RGGI market monitor Potomac Economics released a supplementary "special report" on allowance supply and demand, intended to "help compliance entities easily access key metrics" as they prepare for the control period ending 12/31.
• The report finds allowance supply significantly exceeds demand in the current control period, though the surplus is expected to decline from 55 million allowances at the end of Q2 2026 to 45 million by year end.
• The report, the scoping process announced in June, and inclusion of roughly 5.7 million set-aside allowances in the September and December auctions are efforts by RGGI states to dampen the strong runup in allowance prices that began earlier this year.
• RGGI has not released scoping process details but indicated it would evaluate targeted measures related to affordability and Virginia's reintegration. Some analysts expect the process in late 2026 or early 2027, ahead of the Fourth Program Review, which can start no later than 2028 but as early as mid-2027

NYISO: Audrey Zibelman Appointed NYSERDA Board Chair

• Governor Kathy Hochul appointed Audrey Zibelman as Chair of the New York State Energy Research and Development Authority (NYSERDA) Board of Directors.
• Zibelman brings more than 35 years of global energy, regulatory, operations, and governance experience, including serving as CEO of the Australian Energy Market Operator.
• Her appointment signals continued momentum behind New York's all-of-the-above clean energy strategy and reinforces NYSERDA's role in advancing affordability, reliability, innovation, and economic development.

ISO-NE: Massachusetts to Host Regional Nuclear and Fusion Energy Summit

• On 8/19, Governor Maura Healey announced Massachusetts will host a New England Governors Nuclear Energy Summit on 9/30 at UMass Lowell's Rist Institute for Sustainability and Energy.
• The summit will bring together regional policymakers, industry leaders, researchers, and other stakeholders to examine the role of advanced nuclear and fusion technologies in increasing energy supply, improving grid reliability, lowering electricity costs, and supporting economic growth — along with safety, regulatory oversight, community engagement, and public trust.
• It builds on New England governors' commitment earlier this year to pursue a regional "all-of-the-above" energy strategy and explore advanced nuclear and fusion deployment while supporting continued operation of existing nuclear facilities.
• Massachusetts officials cited advanced nuclear and fusion roadmaps developed with UMass Lowell and the Commonwealth's position as a hub for nuclear research and fusion innovation through MIT, UMass Lowell, and Commonwealth Fusion Systems.

LevelTen Energy’s snapshot on U.S. and EU Power Purchasing Agreement (PPA) pricing is below. For more information on LevelTen please visit www.leveltenenergy.com.

Environmental Corner: PFAS & Drinking Water - Understanding EPA's Current Focus

PFAS & Drinking Water

PFAS (per- and polyfluoroalkyl substances) are a large group of manufactured chemicals that have been used in industrial processes and consumer products. Because some PFAS can persist in the environment for long periods, they are often the focus of drinking water and environmental protection efforts.

In 2026, EPA announced several actions related to PFAS, including:

• A proposal to monitor 30 unregulated contaminants through the Sixth Unregulated Contaminant Monitoring Rule (UCMR 6), which is intended to collect data on contaminants that may be present in drinking water sources.
• Nearly $1 billion in additional funding for states to address PFAS in drinking water and support treatment and infrastructure needs.
• Proposed actions affecting federal drinking water regulations for certain PFAS compounds, while maintaining existing standards for PFOA and PFOS. EPA also proposed extending compliance deadlines associated with PFOA and PFOS drinking water requirements.
• Continued enforcement and cleanup activities related to PFAS contamination, including actions involving PFAS manufacturers and releases to water resources.

Why It Matters

PFAS remains a significant area of focus for regulators, water utilities, manufacturers, and other organizations because of its connection to drinking water quality, environmental compliance, treatment technologies, and monitoring requirements.

Key Takeaway

EPA's recent PFAS activities have focused on drinking water monitoring, contamination response, funding for PFAS treatment, regulatory reviews, and compliance implementation. Organizations that manage water resources or environmental compliance may continue to monitor developments in this area.

Did You Know?

EPA describes PFAS as a large group of manufactured chemicals and continues to use a lifecycle-based approach to address PFAS in drinking water, wastewater, biosolids, and the broader environment.

For questions on these items and more please reach out to SustainabilityTeam@Constellation.com and your inquiry will be directed to an inhouse expert.