Electric Company Under Blackout Emergency Order Can't Restrict Data Centers
Summary
A federal agency, FERC, rejected a plan by PJM Interconnection to limit power to new large electricity users like data centers during shortages. The Department of Energy issued an emergency order to prevent blackouts by requiring certain power plants to operate during high demand and maintenance periods.Key Facts
- FERC oversees interstate electricity, natural gas, and oil transmission.
- PJM Interconnection manages electricity for parts of 13 states in the Mid-Atlantic and Midwest regions.
- PJM proposed a rule for new data centers of 50 megawatts or more to pay for additional power supply or face possible power cuts during emergencies.
- FERC found that PJM’s proposal overstepped its authority and interfered with local electricity regulation.
- The Department of Energy issued an emergency order to reduce blackout risks from October 13 to 16.
- The order requires PJM to use extra power plants and direct large users to backup power if needed.
- PJM faces rising electricity demand faster than new power sources coming online.
- PJM noted that maintenance on power plants and transmission lines during certain seasons increases the risk of power shortages.
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