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(Bloomberg) — PJM Interconnection LLC, operator of the largest US power grid, unveiled a proposal to take backstop measures to help support reliability.
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The grid’s board released a plan on Friday that includes an “immediate initiation” of plans to secure more power supplies after an auction last year failed to guarantee enough to meet demand requests. The proposal will be filed to the Federal Energy Regulatory Commission for approval.
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The move comes hours after members of Trump’s cabinet and state governors including Democrat Josh Shapiro of Pennsylvania on Friday joined forces to urge PJM to hold an emergency wholesale electricity auction later this year as a way to combat higher consumer utility bills while also aiding the development of data centers.
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The new proposal from PJM goes part way to address the call from the administration, but without providing guidance on some of the details. Like the Trump administration has called for, PJM is trying to bolster grid reliability beyond its typical 12-month auctions. But it’s yet to be determined if the backstop measures for procurement that PJM has outlined will include a 15-year auction, as called for by the heads of President Donald Trump’s National Energy Dominance Council.
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PJM, which spans across 13 states, is facing mounting pressure to address two sometimes conflicting challenges: add data centers to its system and tame soaring utility bills. It’s turned the grid operator into a political lightning rod.
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Massive electricity consumption from the data centers that run artificial intelligence has transformed the global energy landscape. Power grids are at the epicenter of the shift, working to ensure technology companies have enough electricity while also facing more pressure from extreme weather and limited supplies.
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Meanwhile, Shapiro and other politicians have also complained that PJM has been too slow to add more energy sources onto the grid, contributing to a supply crunch even as demand skyrockets. Lawmakers in some state are evaluating whether they should leave PJM.
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