Regulators send back the largest grid operator’s emergency plan to buy more power
PJM wants to buy 6.8 gigawatts of new generating capacity to cover a shortfall driven largely by data centers. Federal regulators approved only part of the plan, and the auction is on hold.
PJM, the largest grid operator in the United States, has postponed a special auction meant to line up new power plants. The auction was due to start taking offers on September 30. The day before, the Federal Energy Regulatory Commission approved only part of PJM’s plan.
PJM designed the auction, called a reliability backstop procurement, after its regular auctions fell short of the reserve it aims to hold. It is seeking 6.8 gigawatts of new capacity for the 2028 to 2029 delivery year. Utility Dive reports that the shortfall is largely driven by forecasts of data center demand.
The commission said parts of the plan may be unfair, including how costs would be shared and how much collateral utilities would have to post. Its chair sharply criticized PJM for filing the plan at the last minute. PJM says it will work quickly to answer the concerns. No new date has been set.
Why it matters
This is the grid half of the argument seen from the other side. When data centers lean on the grid for everything, the grid has to scramble for power on an emergency footing. A data center that brings its own supply does not add to that shortfall.
Reality check
Nothing here makes the grid more reliable yet. The power PJM wants has not been bought, the rules for buying it are still in dispute, and the question of who pays is unsettled.
Source Utility Dive