This week’s Top 5 topics (Dec 14–20, 2025)
1) FERC orders PJM to create clearer rules for AI/data-center “co-located load” connections
FERC directed PJM to implement more transparent rules for serving AI-driven data centers and other large loads located near power plants, with the focus being on reliability and stronger consumer protections—their findings also indicated that PJM’s current tariff language was too unclear/inconsistent, for which they ordered revisions. Reuters+2Federal Energy Regulatory Commission+2
Why it matters: If you currently serve (or are planning to serve) large loads, the interconnection + cost allocation playbook is tightening—impacting your project timelines, upgrade costs, and retail bill risk.
2) PJM capacity auction hits record prices—signaling higher bills and a supply crunch narrative
PJM reported record-high capacity prices (a sharp jump vs. prior years), driven by surging demand—especially from (you guessed it) data centers—unfortunately, the auction reportedly missed reliability targets, reinforcing the urgency around bringing new supply online. Reuters
Why it matters: This is a headline driver for rate pressure, and it strengthens the case regulators and utilities will make for new generation, transmission, demand response, and storage—plus changes to market rules.
3) NERC releases the 2025–2026 Winter Reliability Assessment
NERC’s Winter Reliability Assessment warns that many areas face elevated risk under extreme conditions and stresses generator winter readiness and cold-weather preparations. NERC+1
Why it matters: Winter readiness is again front-page: utilities and regulators will be scrutinizing weatherization, fuel assurance, outage coordination, and emergency operations.
4) Water regulatory finance spotlight: Aquarion signals a major rate hike after CT regulators blocked sale/merger
Aquarion (CT’s largest water supplier) said it intends to file for an ~42% rate increase (reported $88M) by mid-February 2026—raising (the hot button word of the fourth quarter of 2025) affordability, as well as governance debates amid ongoing tension with state oversight. CT Insider+1
Why it matters: Water systems are beginning to lean into major capex + operating cost recovery, and regulators are responding with tougher questions on value, timing, and affordability.
5) Regulatory finance: Utility debt securitization / restructuring bonds continue to scale
Fitch assigned final ratings to a large utility tariff restructuring bond issuance (reported around $1.09B), reflecting how securitization structures remain a key tool for utilities to finance or refinance regulated recovery streams. Fitch Ratings+1
Why it matters: Securitization affects customer bill components, utility credit metrics, and regulatory settlement strategy—and it’s increasingly relevant in storm recovery, extraordinary costs, and restructuring contexts.