Largest US power grid moves ahead with plan to meet swelling demand

PJM has been seeking ways to bring more generation online to meet rapidly growing electricity demand, particularly from data centers. It expects demand from new large customers, including data centers, to rise by about 70 gigawatts by 2038.

At its most recent annual capacity auction this month, power prices remained near record highs at around $325 per megawatt-day. For the second consecutive auction, PJM also fell short of its reliability requirement for meeting projected demand.

PJM Interconnection, the largest U.S. grid operator, is moving ahead with plans for backstop power procurement to help ensure adequate electricity supplies as data center-driven demand surges.

The grid operator, which serves 13 states and the District of Columbia, plans to file two proposals with federal regulators. One would establish a "reliability backstop procurement" to address potential power supply shortfalls.

The second would create an operational tool to help manage rapid load growth while preserving system reliability during periods of supply shortages, PJM said.

PJM said on Monday it proposed holding the one-time backstop procurement from September 30 through October 21, with results expected in early December.