FERC approves PJM's plan to fast-track natural gas plants amid power shortage fears

In Harrisburg, Pennsylvania, the Federal Energy Regulatory Commission (FERC) approved a significant proposal from PJM Interconnection, the operator of the congested mid-Atlantic power grid. This decision, made in a 3-1 vote, aims to address the projected power shortage that might hit the grid as early as 2026. PJM Interconnection, which oversees a broad area comprising Delaware, Kentucky, Maryland, New Jersey, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Washington D.C., indicated the rising electricity demand coinciding with the retirement of coal-fired plants and aging nuclear power facilities necessitated this action. The approval opens up an application period where PJM will select and study proposals from power plants ready for construction, favoring those with high capacity that can generate electricity during peak demand times. However, critics, including clean energy advocates, argue that this process disproportionately benefits gas-fired plants and disregard renewable energy sources. They point out that over 97% of the proposals awaiting PJM's approval are for solar, wind, or battery projects, highlighting the advocacy for cleaner energy options. Some voices of opposition, like the Ohio Consumers' Counsel Office, raised concerns regarding transparency and efficiency in PJM's selection process. Alongside energy demand spikes driven by various factors, including advancements in technology and cryptomining, the need for a reliable energy source remains critical. Further complicating this landscape are calls from state officials, including Pennsylvania's Gov. Josh Shapiro, urging PJM to revise its capacity rules to help manage rising energy costs for consumers and businesses alike. They advocate for a revised pricing system that would better balance accessibility, reliability, and cost-effectiveness. Despite the challenges and criticisms directed towards PJM's handling of energy project approvals, the agency continues to maintain its stance on ensuring reliable energy supply amidst evolving market dynamics and regulatory pressures.