Rising electricity costs are being misrepresented in recent arguments advocating for a return to exclusive utility control over power generation, according to experts. Claims that PJM, the grid operator for much of the mid-Atlantic region, restricts who can generate power have been shown to be inaccurate. Investor-owned utilities are actively engaged in constructing generation facilities

PJM Grid Operator to Use Artificial Intelligence for Overhaul. The nation's largest grid operator, PJM, is planning to use artificial intelligence (AI) to overhaul how it runs its electricity system across 13 states, with major implications for renewables, fossil fuels, and an interconnection backlog stalling projects. Google has teamed up with PJM and Tapestry, an arm of Alphabet focused on grid innovation, to use new AI technologies to change the way the grid operator plans projects and brings them online. The idea is essentially to do for the electricity system what Google Maps and searches did for the internet - speed up and simplify the interconnection process. This will be "the first time that artificial intelligence is being used to manage the entire interconnection queue and process," said Page Crahan, general manager of Tapestry, on a call with reporters about the project. Today, developers are largely using the same tools designed for last century's grid. We know we can do better than this, added Crahan, who said her team has been working for seven years on developing the AI tools. Tapestry plans to build on existing AI technologies such as Google DeepMind, saying the plan would speed up reviews for projects applying to link to the grid. That could be significant for PJM, which has thousands of projects waiting to connect, particularly renewables, across its territory. PJM said it would eventually use the new technology for all interconnection requests. The plan comes as the grid operator is trying to figure out how to address a looming electricity shortage due to coal plant retirements through various means. PJM's fuel agnostic approach will welcome any resource that can help our ultimate goal of reliability, Khan said. Coal plants currently make up about 20 percent of PJM's capacity. However, Google's head of data center energy Amanda Peterson Corio said the company does not support new coal plants, considering its target to reach net-zero emissions by 2030. "We remain committed to our goals to decarbonize our electricity footprint," she said. The AI solutions would have to sort through a mix of factors including developer finances, projects' proximity to big PJM transmission lines, and state and local permitting. Many of PJM's backlog challenges date back to roughly 2010 when the hydraulic fracturing revolution led to a surge of cheap gas-fired generation that pushed older coal plants into retirement. About the same time, declining costs for renewable energy produced a flood of applications from developers seeking permission to hook into the PJM high-voltage system. The tide of applications overwhelmed PJM planners who were tasked with ensuring each new project would not overload the surrounding transmission network.

Morgantown, W.Va. – A coalition of Pennsylvania officials, advocacy groups, and environmental organizations has voiced concerns regarding corporate governance and the need for greater openness at PJM Interconnection, the largest electric grid operator in the United States. The group met last week at PJM offices near Valley Forge to address anxieties related to rising energy

The PJM Interconnection, a regional grid operator serving 67 million people across portions of 13 states and the District of Columbia, has reopened its interconnection queue for new generation projects. This marks the first time in four years that the organization is accepting new submissions. The initial cycle of the revised process has received 811

HARRISBURG – Governor Josh Shapiro is challenging the operations of the PJM Interconnection, the region’s primary power grid operator, and PECO Energy Company, a major utility provider, citing concerns over escalating costs for Pennsylvania residents. During an interview, Shapiro reiterated his potential withdrawal of Pennsylvania from the PJM Interconnection, a system serving thirteen states. “The

A federal appeals court has affirmed the Federal Energy Regulatory Commission’s (FERC) authority regarding the participation of energy efficiency resources in electricity capacity auctions managed by PJM Interconnection. The D.C. Circuit’s decision, announced Tuesday, supports FERC’s previous endorsements of a proposal by PJM Interconnection to exclude energy efficiency resources from these auctions. PJM Interconnection operates

The Biden administration has launched a collaborative initiative with over a dozen states to accelerate the construction of new power plants and mitigate rising utility bills driven by the booming artificial intelligence industry. The proposal involves an emergency auction where tech companies, including major players like Amazon and Google, would bid on long-term electricity contracts to secure power supplies and stabilize pricing, potentially adding 7.5 gigawatts of new generation capacity to PJM's grid at an estimated $15 billion value.

The PJM Interconnection is implementing new guidelines to differentiate between standard operational curtailments and those driven by revenue generated in the energy market, specifically targeting older cryptocurrency mining operations. Currently, these facilities account for nearly all economic demand response activity, generating substantial revenue through wholesale power sales, but these operations are now being required to meet a new standard of proof: demonstrating that their hourly cost of mining is lower than their hourly mining revenue, ensuring that curtailments are economically driven rather than solely focused on maximizing energy market revenue.

The PJM Interconnection's market monitor has recommended that the Federal Energy Regulatory Commission (FERC) establish guidelines requiring new, large data centers to only connect to the grid when the region can reliably meet existing energy demands, a move aimed at preventing rolling blackouts and protecting established reliability standards. The proposal aims to address concerns surrounding the rapid growth of data center loads within the PJM region, which has led to increased transmission costs and rising energy prices, emphasizing the need for regulatory clarity on interconnection protocols.

The PJM Interconnection, the grid operator for 13 states, is facing a critical deadline to address the anticipated surge in electricity demand from new data centers, which could lead to rolling blackouts and brownouts by 2027 if not addressed. To mitigate this risk, PJM will hold a stakeholder vote to select a proposal that balances encouraging data center investment with safeguarding ratepayers, including the "Protecting Ratepayers Proposal," which prioritizes rapid grid connection for data centers while incentivizing them to provide their own power supply, and is projected to save the region over $100 billion by 2033.

Governor Shapiro has convened officials from 13 states and other parties to publicly criticize the PJM Interconnection, the electrical grid manager for Pennsylvania and parts of a dozen other states and the District of Columbia. This gathering follows a period of escalating tensions over rising electricity costs, with several governors directing blame towards PJM while overlooking their own state-level policies that contribute to the price increases. Shapiro's actions have drawn attention for their confrontational nature, including suggestions of withdrawing from the PJM system, which has led to PJM agreeing to a temporary price cap despite potential consequences for higher costs and grid instability.

Despite campaign promises to reduce energy costs, the Trump administration's policies have led to a significant increase in electricity prices and household energy bills, with home energy bills rising at more than twice the rate of other consumer goods and services. A 22% rise in electricity procurement costs by PJM, a regional grid operator, amounts to a $16.1 billion increase, with forecasted price increases ranging from 1-5% varying by state and utility, driven by factors such as increased demand due to economic growth, strained supply due to the removal of existing power plants, and delays in new power generation facility construction.

In a coordinated effort, several Mid-Atlantic and Midwest states are challenging the operational practices of PJM Interconnection, a regional grid operator, citing concerns over energy costs and supply stability. The dispute centers on the PJM Independent Market Monitor (IMM), which evaluates the fairness and efficiency of PJM's electricity markets, with state officials seeking to influence its structure and membership in an effort to protect constituents from potentially inflated prices and ensure reliable power flows.

Maryland's governor and a coalition of state executives are pushing for changes at the state's electrical grid operator, citing concerns over rising energy costs and unreliable service that are affecting residents across the state. In a bipartisan effort, they're calling on the organization to appoint experienced, long-term leadership and implement policy adjustments to stabilize prices and ensure reliable service for all Marylanders, ultimately addressing the pressing issue of sharp increases in utility costs.

New Jersey is challenging its established partnership with PJM Interconnection, the regional grid operator, through newly proposed legislation. Concerns have arisen regarding PJM's performance, including substantial delays in integrating new energy projects, perceived resistance to clean energy advancements, and the resulting increase in electricity rates for New Jersey residents. A lack of transparency in PJM’s decision-making processes, addressed to some extent by Maryland’s prior actions, has also fueled this push for change. The proposed bill outlines a layered approach spearheaded by the New Jersey Board of Public Utilities. Key components include mandatory capacity contracting, requiring energy providers to secure at least 80% of future capacity needs for a five-year period. The bill also contemplates potentially withdrawing from PJM’s capacity market and establishing a collaborative “multi-state compact” to implement a fixed resource requirement model. Furthermore, the legislation directs research into the feasibility of complete grid independence, examining options like joining an alternative regional grid or developing a New Jersey-led system. The bill emphasizes a collaborative approach, encouraging cooperation with other states experiencing similar issues with PJM. This legislative effort marks a pioneering step, making New Jersey the first state to introduce such comprehensive measures. Maryland Delegate Lorig Charkoudian has voiced support for New Jersey’s initiative, referencing Maryland's existing transparency efforts. Simultaneously, Governor Murphy and state leaders have announced a $430 million energy relief package for ratepayers, offering immediate financial assistance while the legislative process progresses. This situation reflects a broader trend of growing dissatisfaction with PJM’s performance among states within the region. Key players involved include the New Jersey Board of Public Utilities, tasked with research and recommendations; legislators like Assembly Speaker Craig J. Coughlin; Maryland Delegate Lorig Charkoudian; Governor Phil Murphy, who supports the effort and has implemented rate relief; and PJM Interconnection itself, the focal point of the controversy.

Concerns are emerging that Pennsylvania’s electric utilities may be overstating the number of data centers and other large energy projects anticipated to come online. These potentially exaggerated figures, submitted to PJM, the regional grid operator, have significantly altered projections for electricity demand. Inaccurate demand forecasting can lead to artificial price increases, ultimately impacting Pennsylvania residents. PJM's recent forecasts indicate a substantial rise in electricity consumption across the Mid-Atlantic region, largely attributed to the anticipated growth of data centers powering artificial intelligence, cloud computing, and digital storage. Pennsylvania has been identified as a key hub for this expansion, due to factors like location and lower energy costs. However, the accuracy of these projections is now being questioned. Testimony recently revealed that multiple electric utilities might be counting the same prospective data centers multiple times across different forecasts. Connecting to the electrical grid is a lengthy process, often taking years, especially for large users like data centers. Each utility holds a monopoly over specific areas, leading data centers to "venue shop," seeking the utility that can most quickly connect them to the grid. A preliminary inquiry from one utility could be treated as a pending application by another, and then used to justify infrastructure upgrades, essentially inflating the perceived certainty of these projects. These inflated assumptions feed directly into the energy market pricing model. As a result, PJM believes it needs to plan for a potentially unrealistic surge in energy demand. This triggers the approval of transmission projects, capacity procurements, and grid reinforcements based on these potentially inflated figures. These costs are then passed on to consumers in the form of higher electricity bills. This process, which should be a careful and measured approach to infrastructure planning, has become a speculative exercise with consumers bearing the financial burden. While Pennsylvania needs modern infrastructure and aims to attract data centers, sound policy requires reliable data. Allowing utilities to report speculative projects as guaranteed growth creates incentives for unnecessary spending, hinders smaller, more efficient energy solutions, and increases costs for families and businesses. Legislative action is needed. First, a full audit of pending data center projections submitted by electric utilities should be mandated. Second, the Public Utility Commission should revise the methodology for counting and reporting future demand, focusing only on projects with contractual commitments. Third, transparency from PJM regarding how these projections influence pricing and capital investment is crucial. The rapid technological changes brought about by the AI boom and digital transition highlight the need to adapt past bureaucratic processes to the evolving energy market. Energy markets must be built on reality, not speculation. Athan Koutsiouroumbas is a managing director at Long Nyquist and Associates and a former congressional chief of staff. Follow him on X at @Athan_K.

Ohio lawmakers are questioning the state’s continued participation in PJM Interconnection, the regional power-sharing network that serves 13 states and Washington, D.C. PJM functions as a grid controller, managing electricity distribution from numerous power plants, planning for weather-related challenges, setting wholesale electricity prices, and ensuring reliable power delivery. Ohio joined PJM gradually beginning in the early 2000s, but House Speaker Matt Huffman suggests a potential shift to the Midcontinent Independent System Operator (MISO), which operates in the Midwest. Huffman’s primary concern revolves around PJM’s lengthy approval process for new power generation facilities. A recent report from the Ohio Business Roundtable anticipates a substantial 50% increase in Ohio’s energy needs within the next decade, driven by the rising demands of electric vehicles, cloud computing, and artificial intelligence. Failure to expand power generation capacity could lead to brownouts, increased energy costs, and hindered economic growth. PJM’s backlog of project approvals is a significant obstacle, with less than 20% of proposals gaining approval since 2024. MISO’s territory spans a wider geographic area, including states further west and south. Huffman has initiated discussions with MISO officials, potentially including Andre Porter, a former Ohio regulator now with MISO. The possibility of switching grid operators is in preliminary stages and could garner bipartisan support. State Representative Sean Brennan expressed interest in exploring the idea, emphasizing the need for thorough discussion and legislative debate. PJM acknowledges the concerns raised by Speaker Huffman and has initiated communication to address them. A transition wouldn’s be straightforward; approval from the Federal Energy Regulatory Commission would be necessary. Practical considerations, such as Ohio’s current status as an energy importer, also present challenges. Pennsylvania, another PJM member, is also exploring options to leave. Experts note that states with energy surpluses are better positioned to independently manage their power grids. Ohio possesses natural gas resources that could facilitate greater energy self-sufficiency, a resource the state hasn’t fully leveraged.

New Hampshire lawmakers are considering a bill that would allow the state to study withdrawing from the regional grid operator, ISO-New England. This move could potentially give New Hampshire control over its own electricity marketplace and enable it to import and export power to neighboring states. Proponents of the withdrawal argue that staying within the regional grid system is costly and that neighboring states' climate policies have driven up energy prices. These policies, they claim, limit New Hampshire's options for reducing costs and increasing access to renewable energy sources. On the other hand, opponents of the withdrawal express concerns about its potential impact on consumers. They fear that leaving the regional grid could lead to higher electricity prices, reduced reliability, and increased costs for households and businesses. ISO-New England has not taken a stance on the bill, but would be willing to help New Hampshire with a study if asked. The organization highlights the benefits of regionally shared markets and resources, such as access to more generation and lower costs when neighboring states have cheaper electricity. However, it also notes that states pay for transmission systems based on energy consumption, which could increase costs for New Hampshire if it were to withdraw. Dennis Wamsted, an energy analyst, believes that not being part of the regional grid would lead to higher costs for customers outside of the region and would ultimately hinder efforts to transition to renewable energy. However, he acknowledges that natural gas is currently the dominant source of electricity in New England, which can result in volatile costs due to global market fluctuations. The bill also aims to address climate change policies implemented by neighboring states. It instructs the state's Department of Energy to study strategies for shielding ratepayers from costs associated with these policies. Opponents argue that neighboring states' climate policies have limited New Hampshire's options and driven up energy prices.

FCC Orders PJM to Clarify Data Center Co-Location Rules The Federal Energy Regulatory Commission (FERC) has issued a ruling that highlights the need for clearer guidelines on data center co-location within power plants. This development stems from concerns raised by big technology companies seeking to integrate their enormous data centers with existing power infrastructure. As per FERC's directive, PJM, the grid operator serving 65 million Americans, is required to provide clarification on how it can ensure that natural gas generators built to support data centers of Google or Microsoft do not unduly burden other energy consumers or create problems for the grid. The review FERC undertakes may lead to an order mandating PJM to establish standardized rules. PJM operates in rapidly expanding data center corridors, including the nation's largest one located in Northern Virginia. With numerous proceedings arising from data center co-location requests, PJM was chosen as a focal point by FERC due to its substantial load customer base.

The Utility Industry's Blunder: Ignoring Consumer Protection Amidst Rate Hikes U.S. Rep. Jeff Van Drew (R-2nd) has been vocal about the BPU board members' failure to address the looming rate hikes in New Jersey. The congressman claims that instead of focusing on consumer protection, the utility industry wasted time pushing their Green New Deal agenda. The green energy push may have seemed appealing at first, but it appears to be a distraction from more pressing issues like affordability and reliability. Van Drew emphasizes that real solutions like nuclear, solar, and natural gas were ignored while projects that could have helped consumers were shut down. Jersey Central Power & Light maintains that the utility and other major power companies in New Jersey do not profit from increased rates; rather, they reflect a higher price charged by PJM, the grid operator for New Jersey and 12 other states. However, this explanation falls short of addressing the concerns about rising energy costs. The PJM grid has faced criticism for its slow integration of new sources of energy, with Brian Lipman, director of the state Division of Rate Counsel, pointing out problems with the rules and the limited amount of generation available. The regulatory hurdles and capacity constraints are preventing more energy from being brought online. A recent decision by the Federal Energy Regulatory Commission has paved the way for faster connection requests at PJM, aiming to expand the grid's energy capacity and alleviate some of the pressure on consumers.

Pennsylvania and PJM Interconnection Reach Agreement to Protect Consumers from Rising Energy Costs Governor Josh Shapiro's office announced a significant agreement with PJM Interconnection, the region's electrical grid operator, aimed at safeguarding consumers against steep increases in their power bills. As part of this agreement, PJM has agreed to reduce the maximum price that energy

Pennsylvania Governor Josh Shapiro has reached a significant milestone with grid operator PJM Interconnection, resolving a long-standing complaint about the power market rules that have been affecting residents in his state. This agreement will bring substantial benefits to consumers, resulting in estimated savings of over $21 billion in energy costs over the next two years.

The Pennsylvania Public Utility Commission has approved a new proposal by PJM Interconnection, the grid operator for the Mid-Atlantic region, to lower the price cap for its capacity auction. This move comes in response to concerns from ratepayer advocates and governors that the current price cap was too high. As a result of this approval,

© Reuters. A view shows Santa Llogaia electrical sub-station connected to the interconnection grid between France and Spain that tripped after a sudden, large drop in power supply and caused the major blackout in the Iberian Peninsula, in the village of Santa Llogai By Pietro Lombardi MADRID (Reuters) -Spanish grid operator Redeia disputed the findings of a government report that said failure by the operator to calculate the correct mix of energy was one of the factors that led to a massive blackout in Spain and Portugal on April 28. Redeia operations chief Concha Sanchez also told a news briefing on Wednesday its own investigation had discovered anomalies in the disconnection of power plants on April 28 even though voltage in the system was within legal limits, as well as an anomalous growth in demand from the transport network. Then, in the first seconds of the blackout, a combined-cycle plant that was supposed to provide stability to the system disconnected when it should not have, she said. "Based on our calculation, there was enough voltage control capabilities planned" by Redeia, she said. "Had conventional power plants done their job in controlling the voltage there would have been no blackout." The government’s report released on Tuesday said Redeia’s miscalculation was one of the factors hindering the grid’s ability to cope with a surge in voltage that led to the outage. Redeia will release its own full report on the causes of the outage, its chair, Beatriz Corredor, told the same news briefing. 0 Latest comments