Heat and maintenance strain US power grids, prompting emergency measures

Photo: Tom Fisk / Pexels Power grids that serve approximately one-third of the U.S. population are facing significant strain due to a combination of unexpected heat in the Midwest and Mid-Atlantic regions and planned maintenance outages. PJM Interconnection, the organization responsible for coordinating electricity for about 67 million people across 13 states and Washington, D.C., has issued maximum-generation and load-management alerts. Although there are no current expectations of customer impacts, the situation has prompted an emergency order from the Energy Secretary to allow PJM to access additional resources. This development could potentially influence regulatory actions concerning energy-intensive operations such as data centers, particularly in Texas. Markets have shown a decrease in confidence regarding the likelihood of Texas enacting a data center moratorium by the end of 2026, with the probability currently priced at 2.8% YES for a moratorium by January 1, 2027. However, the possibility of a moratorium by December 31, 2028, is priced higher at 25% YES, reflecting longer-term concerns over energy regulation. The ongoing power supply issues highlight the delicate balance...