The biggest U.S. power grid is under strain from AI — and no one is happy
PJM said it has years, not decades, to overhaul interconnection rules as more than 800 new requests strain the grid.
- On Wednesday, PJM Interconnection released a 70-page paper stating the "current situation is not tenable," with President David Mills writing that fundamental assumptions governing the nation's largest electricity market require immediate evaluation.
- Rising demand from data centers and cloud computing has strained existing capacity, prompting developers to file more than 800 interconnection requests for 220 gigawatts of power since PJM recently reopened its queue.
- American Electric Power CEO Bill Fehrman expressed skepticism Tuesday, stating "if something is not done now, I expect we could still be having these same conversations in 10 years," as AEP considers leaving PJM entirely.
- The New Jersey Board of Public Utilities announced Wednesday it will study replacing the state's century-old utility model, following Governor Mikie Sherrill's campaign centered on electricity prices that have increased 48% over four years.
- PJM's white paper warns the region "has years, not decades" to make fundamental changes to its operations, as the grid operator faces a messy period ahead with politicians threatening price caps and utilities balking at participation.
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Bizpac Review
Nation’s largest grid operator warns drastic measures required as data centers come online
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Regulatory Reform Is Headed for the Nation’s Largest Grid
We’ve already talked this week about Pennsylvania asking whether the modern “regulatory compact,” which grants utilities monopoly geographical franchises and regulated returns from their capital investments, is still suitable in this era of rising prices and data-center-driven load growth.Now America’s biggest electricity market and another one of that market’s biggest states are considering far-reaching, fundamental reforms that could alter how…
Citing 'unsustainable stress' from price volatility, grid operator PJM lays out reform options • Kentucky Lantern
Constellation Energy's Eddystone Generating Station in Delaware County is one of two fossil fuel fired power plants ordered by U.S. Energy Secretary Chris Wright to remain ready to produce electricity beyond their retirement dates. (Photo by Peter Hall/Capital-Star)The nation’s largest electricity grid operator has called on power plant operators, investors, utilities and consumers to consider reforms to ensure the region’s wholesale electricity…
The operator of the largest electricity network in the United States recognizes that its current scheme no longer supports the rise in demand driven by cloud computing and AI. At the heart of the problem are data centers, an overflowing interconnection queue and reform proposals that make businesses, politicians and consumers equally uncomfortable. *** PJM warned in a new technical report that its current situation “is not sustainable” and that …
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