All articles tagged with #pjm
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.
Vistra and Meta have signed 20-year power purchase agreements supporting three Vistra nuclear plants in PJM, including capacity upgrades and license extensions, to provide over 2,600 MW of clean energy, bolster local economies, and ensure long-term reliable, carbon-free power for Meta's operations and the regional grid.
The mid-Atlantic region's power grid faces increased risk of blackouts due to a shortfall in electricity supply, driven by rising demand from data centers, with record-high capacity auction prices and a potential for higher costs and reliability concerns starting in 2027. Efforts are underway to extend price caps and improve supply, but challenges remain in meeting future demand.
FERC has directed PJM, the nation's largest grid operator, to revise its rules to better accommodate AI-driven data centers and large loads co-located with generators, ensuring grid reliability and consumer protection while promoting technological innovation. The order addresses tariff clarity issues, mandates new transmission service options, and emphasizes reliability and fair regulation as technology advances.
FERC has directed PJM, the largest grid operator in the US, to revise its rules to better accommodate AI-driven data centers and large loads, ensuring grid reliability, fair rates, and consumer protection, while also addressing issues related to interconnection and capacity expansion.
PJM's 2027/2028 capacity auction secured 134,479 MW of generation and demand response, with a price at the cap of $333.44/MW-day, but still short of the reliability requirement by 6,623 MW, highlighting ongoing challenges in meeting system demand, especially with increasing data center loads. The auction results reflect market rule changes and efforts to address supply-demand imbalances through faster interconnection processes and new generation projects.
Governors from PJM states threaten to leave the regional grid operator unless they are given a greater role in governance, citing concerns over rising capacity prices and the need for reforms to include more state influence, including board representation and FERC filing rights. PJM is open to discussions, but reforms would require approval and could take time, amid opposition from independent power producers.