PA Environment Digest Blog: NRDC: PJM Grid Members Fail To Recommend Any Of 12 Proposals To Prevent Existing Electric Ratepayers From Bearing The Costs, Reliability Risk Of Soaring A.I. Data Center Energy Demand

On November 19, PJM Interconnection members voted on twelve proposals as part of its Critical Issue Fast Path to address data center load on the electrical grid, but none of the proposals passed, according to the Natural Resources Defense Council.

PJM's members were expected to recommend a proposal or proposals to PJM's Board of Directors that would prevent existing electric ratepayers from bearing the unfair costs and reliability risk of soaring A.I. data center demand.

One of the 12 proposals was a Protecting Ratepayers Proposal by the NRDC and Maryland state Sen. Katie Fry Hester.

Now it is up to the PJM board to decide on a final plan, which they are expected to do by December.

“The growth of data centers is colliding with the reality of the power grid. PJM members weren’t able to see past their commercial interests and solve a critical reliability threat," said Tom Rutigliano, Senior Advocate for Climate & Energy at NRDC.

"Now the board will need to stand up and make some hard decisions. We hope they fulfill their obligation to 67 million people and commit to protecting reliability, not subsidize data centers at public expense, and treat all customers fairly.

“The public faces a $163 billion bill through 2033; and the region could suffer multiple rolling blackouts each year. If the board doesn’t step up, the region won’t be able to meet record demand, and will suffer declining reliability for years to come.”

Background

PJM Interconnection, the nation’s largest power grid operator, oversees electricity markets for 67 million people across 13 states and the District of Columbia, including Pennsylvania.

Recently, the grid operator signaled that it has no spare electricity supply to meet surging demand from new A.I. data centers.

If nothing is done, residents in PJM states could see forced blackouts and $163 billion in total electricity capacity costs hitting power bills from 2028-2032.

Electricity rates are already surging; on June 1, consumers within the PJM footprint began seeing increases of as much as 29% on their power bills as the July 2024 capacity auction prices took effect.

PJM forecasts that data centers will drive a need for more than 30 gigawatts of peak electricity capacity by 2030 — enough to power more than 20 million households, or approximately all the homes in New Jersey, Pennsylvania, Ohio, Virginia, and Maryland.

NewsClip:

-- Utility Dive: PJM Members Fail To Agree On A.I. Data Center Interconnection Rules; Board May Develop A Proposal, But Timing Unclear

Resource Links - A.I. Data Centers:

-- PUC Approves Proposed Model Tariff For Public Review To Balance A.I. Data Center Growth And Ratepayer Protection [PaEN]

-- Data Center Stampede Trampling PA Ratepayers Part I: PA Utility Law Project - Utility Terminations Up 30% Already; Prioritize Existing Loads; Centers Need To Help Pay For Utility Assistance [PaEN]

-- Data Center Stampede Trampling PA Ratepayers Part II: PA Consumer Advocate - PUC Should Set Conditions For Centers To Be Served By The Grid; Set Power Curtailment Priorities [PaEN]

-- Data Center Stampede Trampling PA Ratepayers Part III: PJM Market Monitor - Data Centers Have Cost Existing Ratepayers $16.6 Billion Already; Centers Should Bring Their Own Power Generation To Prevent More Large Price Spikes [PaEN]

-- PJM Electric Auction Impacts: 1 In 5 PA Households Report Problems Now Paying Energy Bills; Electric Utility Shutoffs Up 38.1% So Far This Year [PaEN]

-- PJM Electricity Auction: PJM Lost 2.8 Gigawatts Of Power Due To Reduced Reliability Rating Of Natural Gas Power Plants; Could Gain 12.2 Gigawatts By Increasing Reliability From Less Than 75% Now To An Achievable 90% [PaEN]

-- Environmental Justice: What Happens When A.I. Data Centers Come To Town? -- Environmental, Economic, Grid Impacts [PaEN]

-- Clean Air Council, Environmental Health Project, Residents Urge State To Stop Headfirst Jump To Power A.I. Data Centers With Fossil Fuels [PaEN]

-- Gov. Shapiro Provides Update On The Fight To Lower Energy Prices, Calls On General Assembly To Move His Commonsense Lightning Energy Plan [PaEN]