The PJM Interconnection has set a capacity price ceiling of $329.17 per megawatt-day for the upcoming service year, highlighting a pressing imbalance between increasing energy demand in 13 states and Washington D.C., and insufficient corresponding supply growth. To mitigate this issue, PJM is extending the operation of fossil-fired power plants to bolster grid energy availability, while also emphasizing the need for proactive state support, particularly for "shovel-ready" projects navigating the PJM interconnection queue.

A record-breaking $16.1 billion was spent on electricity supply in the US last year, exceeding the previous year's total of $14.7 billion, according to PJM Interconnection LLC. This significant increase in expenditure is largely driven by the rapid growth of artificial intelligence and other high-energy consuming technologies, which is putting considerable strain on the existing power grid infrastructure, prompting calls for increased electricity generation capacity to meet escalating demand.