HARRISBURG, Pa. — The Federal Energy Regulatory Commission (FERC) has given the green light to a proposal from PJM Interconnection, which oversees the heavily trafficked mid-Atlantic power grid. The approval aims to mitigate the potential for electricity shortages as the demand for power rises, spurred on by increased usage of artificial intelligence and the proliferation of data centers.
However, detractors argue that this initiative may prioritize the rapid construction of new natural gas facilities over the development of clean energy alternatives that do not contribute to greenhouse gas emissions.
In a decision made on Tuesday night, the commission voted 3-1 in favor of the proposal, labeling it as “just and reasonable and not unduly discriminatory or preferential.” This proposal was first introduced by PJM back in December.
Based in Pennsylvania, PJM has expressed concerns that a power shortage could emerge as early as 2026. This potential crisis is linked to the increasing demand for electricity alongside the retirement of coal-fired plants and aging nuclear facilities.
To qualify for the program, PJM specified that projects must be shovel-ready, capable of providing significant power capacity, and positioned to generate electricity during peak shortfall periods. They plan to initiate an application phase for proposals and will evaluate 50 candidates for further study.
Advocates for clean energy contend that this approach disproportionately benefits natural gas power plants. They also accuse PJM of contributing to the current reliability challenges by taking too long to assess proposals for wind and solar projects that are pending approval.
Federal data indicates that over 97% of the pending proposals in PJM’s queue are from solar, wind, or battery storage sources, whereas less than 3% are related to natural gas.
Critics have raised concerns about the selection process employed by PJM. The Ohio Consumers’ Counsel Office noted that it may be challenging for consumers to ascertain whether PJM is making decisions that are the most efficient and cost-effective in terms of power plant selection.
The demand for electricity has surged for the first time in many years, driven by factors such as artificial intelligence, cryptocurrency mining, the general electrification of everyday life, and a bipartisan push to revitalize manufacturing within the United States.
PJM is responsible for managing the electric grid across several states, including Delaware, eastern Kentucky, Maryland, New Jersey, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Washington, D.C., along with small sections of Illinois, Indiana, Michigan, and North Carolina.
