PJM Interconnection

Natural gas has become the dominant energy source in the first round of projects accepted into PJM Interconnection’s reformed interconnection process, making up nearly half of the qualified capacity. This surge is driven by expected demand growth of up to 70 gigawatts by 2038, largely fueled by data centers. Although solar and storage trail natural gas by capacity, they together account for far more individual projects than any other resource.

PJM Interconnection has created a plan, called the Interim Resource Adequacy Service (IRAS), to manage mounting pressure from data centers and prevent escalating utility costs across its 13-state territory. The new proposal requires heavily involves state lawmakers, who are now responsible for forcing large loads to secure their own power supplies or face cutoff during grid emergencies. PJM is submitting this multipart plan to the Federal Energy Regulatory Commission (FERC) for permission before implementation.

PJM Interconnection, the largest U.S. grid operator, has proposed a plan to address data centers causing rising utility bills for other customers in its 13-state region. The plan shifts responsibility to states and regulated utilities to enforce measures requiring data centers to secure necessary resources.

The Dominion offshore wind project's cost has increased by nearly $300 million due to revised network upgrade costs from PJM Interconnection, tariffs under the Trump administration, and updated turbine installation projections.

Eolian is constructing the largest battery east of the Mississippi in Ohio to support an AI computing hub near Columbus. The battery, part of the Flint Grid project, will store 1 gigawatt-hour and provide 200 megawatts for up to five hours, addressing energy demands from data centers and Intel's $28 billion chip factory in the region.

Former FERC Chairman Joseph Kelliher argues that the Federal Energy Regulatory Commission should reject a proposal allowing states to share filing rights with the PJM Interconnection and its transmission owners under Section 205 of the Federal Power Act.

PJM Interconnection's 2028-29 capacity auction hit the maximum price cap of $325 per megawatt-day, driven by rising electricity demand from AI data centers. Moody’s Ratings highlighted that new power generation costs are being socialized across all ratepayers, not borne by AI-driven load customers, leading to higher bills for households and small businesses.

American Efficient, a Durham-based energy company, filed for Chapter 11 bankruptcy after being fined $722 million and ordered to repay $410 million by the Federal Energy Regulatory Commission (FERC) for allegedly manipulating electricity markets. The company denies wrongdoing and claims FERC's accusations are baseless.

The Ohio Power Siting Board (OPSB) has asked the Ohio Supreme Court to dismiss a case involving a denied solar project permit, arguing the project's grid interconnection agreement expired. Solar advocates claim the OPSB missed deadlines, leading to the expiration, and warn the dismissal would create uncertainty for renewable energy development in Ohio.

PJM Interconnection's current process for securing new energy is failing to meet rising electricity demand from data centers. The grid operator is considering adopting a new process to address this issue.

PJM Interconnection's electricity price cap of $325 per megawatt-day for 2028-2029 was reached due to rising demand from electrification and data centers, with the auction falling short of capacity goals. The cap was extended by PJM at the request of a coalition of governors and the Trump administration.

The grid’s fastest-growing resource is flexibility, not generation, according to the article. A gap exists between available technology and institutional frameworks, with FERC's July 23 technical conference on PJM Interconnection’s governance addressing this issue.

PJM Interconnection's electricity price for 2028 and 2029 reached the $325-per-megawatt-day cap set by the Shapiro administration. The auction fell 6,831 megawatts short of capacity goals, exacerbating concerns about grid reliability and rising consumer costs due to retiring plants and increased demand from data centers.

A heat wave in Virginia caused a data center to emit dark smoke as diesel generators were activated to manage power grid stress. PJM's demand-response program incentivized reduced grid usage, with data centers like Digital Realty participating to prevent outages. Environmental concerns arose over fossil fuel use for backup power during the July 2026 event.

Ohio lawmakers are advancing Senate Bill 294, which could add hurdles for utility-scale solar and wind projects by requiring a 50% capacity factor for reliability. The bill, influenced by ALEC, faces criticism for favoring natural gas and nuclear energy over renewables, despite earlier efforts to level the energy market through Ohio House Bill 15.

A heat wave in the Philadelphia region is driving electricity demand to record levels, but PJM Interconnection anticipates meeting demand if power plants and transmission lines function as expected. The grid operator has requested deferred maintenance and reduced usage from large consumers to manage the strain.

PJM Interconnection received authorization from the U.S. Department of Energy to require data centers and large customers to use backup generators during a heatwave to prevent power outages. The emergency order, effective through July 3, allows temporary pollution limit exceedances for power generation and excludes critical facilities like hospitals and defense sites.

Advanced transmission technologies (ATT) aim to reduce electricity loss and costs by improving grid efficiency. A Pennsylvania bill (House Bill 2223) would require utilities to assess ATT deployment before approving new power lines, supported by advocates like Jenny Netherton and Doug Pietrucha. The legislation seeks to prolong existing infrastructure and address rising electricity costs driven by data centers and electrification.

PJM Interconnection received authorization from the U.S. Department of Energy to require data centers and other large customers to use backup generators during a heatwave to prevent blackouts. The emergency order, signed by Secretary of Energy Chris Wright, allows PJM to tap into backup power resources until July 3, excluding critical facilities like hospitals. The measure aims to address high energy demand amid extreme temperatures.

The Citizens Utility Board of Ohio warns against relying on aging coal-fired power plants, citing increased electricity costs for consumers and market distortions that hinder investment in newer energy solutions. The report highlights cost recovery tools like uplift payments and reliability must-run contracts, which keep uneconomic plants operational despite cheaper alternatives.

A new Federal Energy Regulatory Commission (FERC) order may strengthen Maryland's argument that ratepayers were unlawfully billed billions for grid upgrades serving out-of-state data centers. However, it remains unclear whether the directive applies to past costs already allocated by PJM Interconnection or only future expenses.

PJM Interconnection warns of record electricity demand due to a heatwave affecting 13 states, including Maryland, with projected usage exceeding 166,000 megawatts. PJM seeks permission to require data centers to use backup generators during peak times, while utilities urge customers to reduce energy consumption. AI data centers are cited as a key driver of increased grid strain.

This summer's extreme heat and weather are stressing data centers globally, with incidents in Virginia, France, and Texas highlighting risks like power cuts and insurance costs. A study by First Street reveals 79% of data centers face high climate risks, impacting operations and costs despite record investments in the sector.

Base Power is addressing energy demand issues in PJM Interconnection by installing large home batteries in one corner of the region. PJM, serving 67 million people across 13 states from the mid-Atlantic to the Midwest, is criticized for failing to meet rising energy needs.

Utilities in PJM Interconnection have invested nearly $6 billion to install 12 million smart meters aimed at improving energy efficiency for customers. However, these meters are not sharing data in most of PJM’s 13-state territory, creating a problem.

Pennsylvania lawmakers discussed expanding battery storage to stabilize the power grid and reduce electricity costs. A proposed bill (House Bill 2380) would require major utilities to install 3,000 megawatts of battery storage by 2033, with experts highlighting its benefits for energy efficiency and reliability. Industry representatives raised concerns about the legislation's policy implications.

US Representative Nancy Mace calls for a one-year moratorium on new datacenter projects in South Carolina, citing concerns over rising power bills and energy demand. Mace argues that the state's residents should not have to subsidize Big Tech's bottom line. She proposes implementing rules to protect residents from higher electricity costs.

Virginia Governor Abigail Spanberger signed legislation directing regulators to assign electricity costs to data centers and allowing Dominion Energy to spend $900,000 per mile to bury local distribution lines. The bills removed a requirement for data centers to pay capacity market costs but expanded regulatory authority to address rising grid strain and customer bills.

Prices in the US' largest wholesale power market have nearly doubled due to demand from datacenters, with a 75.5% increase year over year. The PJM Interconnection serves 13 states and the District of Columbia. Monitoring Analytics predicts prices will get worse without changes.

The PJM Interconnection power grid is under strain due to AI and is planning an overhaul, but its ability to do so is being questioned. The grid oversees some of the densest data center developments on Earth. This situation has led to dissatisfaction among stakeholders.