HARRISBURG, Pa. (AP) — The Federal Energy Regulatory Commission (FERC) has granted approval for a proposal put forth by PJM Interconnection, the operator of the congested mid-Atlantic electrical grid, aimed at mitigating the risk of power shortages. However, this move has faced criticism, with opponents arguing that the proposal effectively accelerates the construction of new natural gas power plants.
In a decision made on Tuesday night, FERC voted 3-1 in favor of PJM’s proposal, declaring it as “just and reasonable” and not unduly discriminatory or preferential. This proposal was initially submitted in December of the previous year. PJM, which operates in Pennsylvania, indicated that this initiative was necessary due to the potential for power shortages affecting the grid as early as 2026, driven by increasing electricity demand alongside the retirement of coal-fired and aging nuclear power plants.
PJM's criteria for eligible projects encompass those that are ready for construction, are capable of providing relatively high power capacity, and have a higher likelihood of generating electricity during peak power shortage scenarios. The organization announced plans to open an application period for various proposals and aims to select 50 submissions for further study.
Nevertheless, clean energy advocates have voiced concerns that the proposal primarily benefits gas-fired plants. They hold PJM responsible for the current reliability challenges, claiming that the organization has taken an excessively long time to assess proposed wind and solar energy projects within its project queue. According to federal data, proposals awaiting PJM's approval consist of over 97% solar, wind, or battery storage projects, while less than 3% are related to natural gas.
Some critics have further scrutinized PJM's selection process. The Ohio Consumers' Counsel Office has expressed doubts over whether PJM will choose the most efficient or cost-effective power plants, raising concerns about transparency and consumer awareness in the decision-making process.
The growing demand for electricity has surged for the first time in decades, largely due to technology companies engaged in the artificial intelligence race, which require substantial energy supplies for their data centers. Additionally, factors such as cryptomining, the broad electrification of society, and bipartisan political efforts to encourage domestic manufacturing are contributing to the rising electricity demand.
PJM oversees the electric grid across a significant portion of the eastern United States, including Delaware, eastern Kentucky, Maryland, New Jersey, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Washington, D.C. The organization also extends its management to smaller regions of Illinois, Indiana, Michigan, and North Carolina.
