PJM opposes waiver for $2B Ohio gas-fired plant

Executive Summary

PJM Interconnection, the largest U.S. grid operator, is opposing a waiver request from Advanced Power Services for its $2 billion Chestnut Run gas-fired power plant in Ohio. The developer seeks to reduce the project’s maximum output by 55 MW (from 1.3 GW to 1.245 GW) and switch turbine models from GE Vernova’s HA.03 to HA.02 to address manufacturing backlogs and maintain a May 2030 online date. PJM argues that granting the waiver would give Advanced Power an unfair advantage over other developers complying with its Reliability Resource Initiative (RRI) rules, which bar such changes.

The Players

Advanced Power Services is a Boston-based independent power producer owned by ArcLight Capital Partners, a private equity firm focused on energy infrastructure. The Chestnut Run project is a roughly $2B, 1.3 GW natural gas-fired combined-cycle plant in Carroll County, Ohio—a critical dispatchable asset in the PJM footprint.

PJM Interconnection is the grid operator for 13 states and the District of Columbia, managing a 180+ GW system. Its RRI process was designed to fast-track “shovel-ready” projects (initially 51 projects totaling 11.8 GW) to address looming capacity shortfalls. The RRI explicitly prohibits changes to project size or interconnection rights after application.

GE Vernova is the turbine supplier. The HA.03 model is in such high demand that it would delay the project by at least two years; switching to the HA.02 model reduces output slightly but allows the project to meet the original timeline. This is a microcosm of the broader supply chain crunch affecting all gas-fired projects.

The Numbers

The 55 MW reduction is relatively minor (4.2% of total capacity), but the waiver is critical for the project’s eligibility in PJM’s upcoming reliability backstop auction, which requires projects to be online by June 1, 2032. Without the waiver, the two-year turbine delay could push the project past this deadline, risking its ability to secure a capacity contract.

So What?

This dispute validates two critical trends, now colliding in regulatory and supply chain constraints:

First, the turbine supply chain is the new bottleneck. Not power demand, not interconnection queues, not financing—gas turbines themselves. GE Vernova, Mitsubishi, and Siemens Energy are at maximum capacity. Developers are scrambling to secure any available model, even if it means sacrificing a few megawatts. This is the hardware equivalent of the Nvidia GPU shortage, but for power plants.

Second, interconnection rules are now geopolitical. PJM’s refusal to grant a waiver is legally correct (the RRI rules are clear), but strategically questionable. The PJM region faces “well-documented and unprecedented resource adequacy challenges,” per Advanced Power’s filing. Blocking a 1.2 GW dispatchable plant over a 55 MW reduction—especially when load is growing due to data centers—prioritizes process over reliability. This tension will likely end up at FERC.

What Should You Do With This?

If you are a power developer with a project in PJM’s RRI process: you are watching this case closely. If Advanced Power wins its waiver, it sets a precedent for others to swap turbines or adjust capacity. If it loses, you are locked into your original specifications—and if supply chain delays hit, you are out of the fast-track. Your strategy: lock in turbine supply contracts now, even if it means paying a premium, and avoid needing a waiver at all.

If you are a turbine OEM (GE Vernova, Mitsubishi, Siemens): your order book is your leverage. Developers will pay for allocation. Consider dynamic pricing: charge more for firm delivery dates, and tier your product lines (HA.02, HA.03, etc.) to match project timelines. You are now the gatekeeper of the AI power build-out.

If you are a data center operator or hyperscaler in the PJM footprint: this is a warning. Even “shovel-ready” projects are facing 2-year turbine delays. Your power availability projections should include a supply chain risk factor—assume delays of 12-24 months for any new gas plant. Hedge by securing behind-the-meter generation or buying existing assets rather than waiting for greenfield.

If you are an investor: watch the FERC decision (expected by July 1, 2026). A ruling for Advanced Power would be bullish for gas-fired developers in PJM, as it signals regulatory flexibility. A ruling for PJM would signal a hardline approach, benefiting existing generators (whose capacity becomes more valuable) and disadvantaging new entrants. 

Source: Utility Dive, June 29, 2026