PJM Cycle 1: How Developers Can Prepare Now

PJM will open its new Cycle 1 cluster this year, with an application deadline of April 27, 2026. For developers, preparation now will pay off later. Entry into the cycle depends on having commercial documentation, technical inputs, and site control locked down before the window closes. 

At a minimum, projects should be ready to submit: 

• An executed Application and Studies Agreement (ASA) 
• The required study and readiness deposits 
• Demonstrated site control 
• Complete and accurate technical data in PJM’s NextGen portal

De-Risking Development Capital Through Early Analysis

For teams looking to manage development risk, now is a good time to perform prospective studies to flag potential cost drivers and system constraints ahead of PJM’s formal results. These early looks often uncover exposure to major network upgrades, deliverability limits, or affected system issues while there is still time to adjust project strategy. 

Large withdrawals in Transition Cycle #2 (TC2) could change the landscape of network upgrades in that cycle, and consequently the available capacity for Cycle 1 projects. Many TC2 projects withdrew because of preexisting violations, largely driven by change in deliverability study methodology and the lag between Interconnection Planning and Regional Transmission Expansion Plan (RTEP) planning activities. This may propagate into Cycle 1 in various degrees.  

Proper prospecting at this point must go beyond high-level injection studies or running automated analysis software. Instead, it must focus on employing the right expertise that understands PJM’s multi-dimensional interconnection landscape, including:

• The PJM OATT Tariff and interconnection process 
• The PJM Generator Deliverability methodology and cost-allocation principles 
• Knowledge of the PJM system and how it will evolve in the near future  

Many developers experienced the importance of understanding PJM’s multi-dimensional interconnection landscape during Transitional Cluster #1 (TC1), when their project’s Commercial Operation Date (COD) was pushed into 2030 due to RTEP contingent upgrades. Understanding the impact of planned RTEP 2024 and soon-to-be-approved RTEP 2025 baseline upgrades on interconnection timelines will be critical to mitigate risks in Cycle 1.  

Near-term milestones that are coming up include:

• Now: Assess major network upgrade risks and perform initial sizing using the base planning model and latest status of previous clusters. It is the time for an early go- or no-go decision 
• Late June – Late July: Refresh prospective analysis using PJM’s published Cycle 1 Phase I models. It is another good time for go- or no-go decision, before 50% of Readiness Deposit #1 becomes at risk.  
• End of 2026: DP1, when the first glimpse of network upgrades is known, and additional analysis for queue attrition can be performed

Why EPE’s Experience Matters 

EPE’s team has the expertise to help developers navigate the multi-dimensional interconnection landscape in PJM. EPE has one of the largest teams in the nation and supported over 100 projects in TC2 with a clean record of zero involuntary withdrawal.  

NextGen is still new enough that many teams are seeing it for the first time in a live filing. Projects in AH2+ queues will need to resubmit as new projects on NextGen, no exceptions, with specific rules for Transitional CIR and CIR Transfer projects. 

EPE submitted some of the earliest Cycle 1 projects on NextGen and supported several Transition Cycle 2 DP 1 submissions using NextGen. Our hands-on exposure helps avoid last minute surprises and keeps projects moving into the study process without unnecessary resets. 

Let’s Connect 

With PJM’s Cycle 1 window approaching, early preparation is no longer optional. It is a competitive advantage.

EPE’s experience navigating the PJM cycle process, prospective analysis, developing technical packages and executing submissions in NextGen helps developers enter and navigate the process with confidence and avoid costly missteps. To find out how we can help you pair interconnection execution with prospective studies, shadow analyses, and targeted sensitivity runs to make informed decisions before major capital is committed, contact our team using the form below.