1. Introduction 2

2. Shared Structural Challenges 3

2.1. Uneven Development Timelines 3

2.2. Unique Load Profiles and Operational Characteristics 4

2.3. Interconnection Queues and Phantom Projects 4

2.4. Power Co-Location and Behind-the-Meter (BTM) Generation 5

2.5. Allocative Inefficiencies 5

3. Virginia 5

3.1. Framing Virginia’s Challenges 5

3.1.1. Load Growth and Transmission Dependence 6

3.1.2. Operational Risk from Concentration 6

3.1.3. Uneven Cost Allocation 7

3.1.4. Future Resource Adequacy Concerns 7

3.2. Institutional Responses 7

3.2.1. PJM: Market Design and Planning Adjustments 8

3.2.2. State-Level Actions 8

3.2.3. Local-Level Reforms 10

3.3. Virginia Takeaways 10

4. Texas 10

4.1. Background 10

4.2. Framing Texas’ Challenges 11

4.2.1. Load Growth and Capacity Challenges 11

4.2.2. Clustering, Congestion, and Reliability 12

4.2.3. Cost Allocation 13

4.3. Institutional Response 13
4.3.1. Screening and Staging Large-Loads 13

4.3.2. Reliability and Operational Controls 14

4.3.3. Cost Responsibility 14

4.3.4. Addressing Insufficient Transmission and Generation 14

4.4. Texas Takeaways 15

5. Texas and Virginia: Two Sides of the Same Coin 15