HARRISBURG, Pa. — The Federal Energy Regulatory Commission has given the green light to a proposal from PJM Interconnection, the operator of the busy mid-Atlantic power grid, aimed at addressing potential power shortages. This decision, however, has raised concerns among critics who argue that it will expedite the development of new natural gas plants.
In a 3-1 vote on Tuesday, the commission described PJM’s proposal as “just and reasonable and not unduly discriminatory or preferential.” The original proposal was put forth in December. PJM, headquartered in Pennsylvania, explained that it initiated the proposal in response to forecasts of a power shortage that could impact the grid as early as 2026, driven by an increase in electricity demand alongside the retirement of coal-fired and older nuclear plants.
To qualify for consideration, PJM established criteria for eligible projects, prioritizing those that are construction-ready, can deliver considerable power capacity, and are more likely to generate electricity during peak demand periods. PJM indicated it will initiate an application window for submissions and plans to examine up to 50 proposals.
Advocates for clean energy contend that this approach disproportionately benefits gas-fired plants. They attribute the current reliability issues to PJM’s prolonged evaluation times for wind and solar project applications that are pending approval. Current federal data shows that over 97% of proposals in PJM’s queue are for solar, wind, or battery storage, with less than 3% representing natural gas projects.
Some critics have raised doubts about the selection process established by PJM. The Ohio Consumers’ Counsel Office expressed concerns that consumers will be unable to determine if PJM is choosing the most efficient and cost-effective power plants.
For the first time in decades, electricity demand has surged, primarily driven by tech companies competing in the artificial intelligence sector, which require substantial power supplies for their data centers. Factors such as cryptomining, increased societal electrification, and bipartisan pressure to invigorate domestic manufacturing are contributing to this heightened electricity demand.
PJM oversees the electric grid in various regions, including Delaware, eastern Kentucky, Maryland, New Jersey, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Washington, D.C., along with minor portions of Illinois, Indiana, Michigan, and North Carolina.
