All articles tagged with #pjm
PJM, the largest U.S. power-grid operator, activated a federal alert to cut electricity use amid generator outages and heavy air-conditioning demand during a heatwave, ordering utilities to curtail load as transmission lines become congested and wholesale prices surge.
As a brutal heat wave drives air-conditioning use, Energy Secretary directs mid-Atlantic data centers served by PJM to run on backup generators instead of drawing power from the grid, freeing capacity for residents. DOE estimates more than 35 GW of available backup generation nationwide; New York City is not part of PJM. While this can relieve grid stress, it raises emissions and air-quality concerns, and the PJM region has fewer large batteries to store peak energy.
Amid a brutal heat wave, the Energy Department authorized PJM to direct large-load customers, including data centers, to rely on their own backup power as a last resort to prevent blackouts, tapping an estimated 35 GW of unused backup generation (enough to power ~26 million homes) while exempting critical facilities; the measure is limited to emergency conditions through Friday and has raised concerns about emissions from backup generators.
Regulators and grid operator PJM are assessing how surging data-center electricity demand should be met, including options for direct connections to power plants or on-site generation, in a debate that could reshape grid investment, electricity prices, and AI development as FERC prepares a key ruling in the coming months.
A Monitoring Analytics report finds PJM wholesale power prices rose about 76% in early 2026 due to AI data-center load, averaging $136.53/MWh vs. $77.78/MWh; with demand outstripping capacity, prices and transmission costs are expected to stay high through 2028, and the fuel mix shifted toward oil and natural gas while coal and wind declined.
PJM Interconnection proposed three broad frameworks to reform its markets to ensure adequate future power supplies: Path A would stabilize the capacity market with long-term contracts, Path B would formalize reliability differentiation across customer classes or regions, and Path C would pivot toward an energy-and-ancillary-services market with capacity acting as a backstop. Stakeholders will discuss these options through 2026 to build regional consensus, with a multi-track rollout possible (A in 2026–2029, B 2027–2030, C 2028+). Analysts expect reforms before the May 2027 capacity auction, amid pressures from rising load (notably data centers) and regulatory price caps.
Winter Storm Fern knocked out power for more than a million customers across the South as frigid conditions loom, pressuring the electric grid. PJM projected record winter demand and the Energy Department allowed full operation of grid resources while utilities mobilized tens of thousands of workers; gas prices surged and authorities warned the system could remain stressed through the week amid ice and falling temps.
A massive winter storm boosted electricity demand in the PJM region, pushing Virginia real-time prices above $1,800/MWh as data centers—the world’s largest cluster—drive usage; PJM forecasts a record winter demand while outages leave hundreds of thousands without power across several states.
PJM, which runs the grid for 13 states and DC, issued Cold Weather Alerts and Advisories ahead of a weekend Arctic cold front that could push temperatures into single digits (and possibly below zero in its Western Region). The surge could drive peak demand above 130,000 MW for seven straight days, with a potential new winter peak on Jan. 27. PJM also declared Conservative Operations for Jan. 24–27 and ordered a generator maintenance outage recall to boost available capacity. Forecasts for Jan. 23–30 show rising loads (roughly 125,900 MW to 146,000 MW), and PJM outlines winter-preparedness steps under its Manual 14D guidelines, citing cross-region impacts and ongoing winter operations planning.
AI data centers are expanding rapidly, with Virginia hosting the world’s largest cluster and major investments from Meta, Microsoft, and Amazon, but the U.S. electrical grid is aging and may struggle to meet rising energy demand. Officials have floated an emergency electricity auction through PJM to cover growing costs from these centers, while residential rates have climbed and utilities are exploring higher charges for large customers. Projections suggest data centers could consume about 6.7%–12% of US electricity by 2028, and cooling needs could push water use up by about 170% by 2030, highlighting the challenge of coexisting data centers and households.
The Trump administration, citing reliability concerns and rising electricity costs in the Mid-Atlantic, urges PJM to temporarily overhaul market rules and hold an emergency procurement auction to finance more than $15 billion of new baseload power, offering 15-year revenue certainty, rate protections for residential customers, and data-center cost allocations to speed reliable, affordable power for industry and families.
PJM’s Board outlined a 2026 package of proposals to integrate large-load customers (including data centers) while preserving reliability and affordability. The plan includes load-forecast improvements, options for loads to own a generation or participate in a connect-and-manage framework, an accelerated interconnection track for state-backed projects, a backstop generation procurement process, and a market-review to guide investments. Several actions would be filed with FERC and implemented with ongoing stakeholder input as the region’s supply-demand balance evolves.
The White House and a bipartisan group of Northeastern governors are pressuring PJM, the region’s power-grid operator, to hold an emergency 15-year electricity auction limited to technology companies building data centers. Proceeds would fund new power plants to meet data-center-driven demand over the next decade and a half, aiming to curb rising costs for consumers. PJM says it wasn’t invited to the plan and warned it cannot guarantee supply, highlighting an industry-wide surge in power use as AI infrastructure expands. Some tech firms, like Microsoft, have signaled willingness to cover grid upgrades and higher bills to support the system.
President Trump and Northeast governors will direct grid operator PJM Interconnection to hold a one-time, 15-year reliability auction that would force data-center operators to fund new power plants to curb rising electricity costs driven by data-center demand; if PJM agrees, the plan could backstop roughly $15 billion in new generation and reshape AI-era data-center power dynamics, with the auction targeted by the end of September and PJM not invited to the rollout.
Vistra and Meta have announced 20-year power purchase agreements supporting three Vistra nuclear plants in PJM, including capacity increases and license extensions, to provide over 2,600 MW of clean energy, bolster local economies, and ensure long-term operation of these carbon-free assets.