HARRISBURG, Pa. (AP) — The Federal Energy Regulatory Commission has approved a proposal from the operator of the congested mid-Atlantic grid to head off the potential for power shortages but that critics say will effectively fast-track the construction of new natural gas plants.
The commission's Tuesday night decision, in a 3-1 vote, said the proposal by PJM Interconnection is “just and reasonable and not unduly discriminatory or preferential.” The proposal was originally submitted in December.
PJM, based in Pennsylvania, has said it made the proposal because a power shortage could affect the grid as early as 2026 as demand grows for electricity at the same time coal-fired plants and aging nuclear plants are retiring.
PJM's criteria for an eligible project includes ones that are ready to build, can provide a relatively high power capacity and are likelier to produce electricity when the grid is most likely to see power shortfalls. It said it would open an application period for proposals and select 50 to study.
Clean energy advocates say the process favors gas-fired plants, and they blame PJM for creating the existing reliability problem by taking an unduly long time to study proposed wind and solar energy projects in its project queue.
Proposals awaiting PJM's approval are more than 97% solar, wind or battery storage, according to federal figures. Less than 3% are natural gas.
Some critics questioned PJM's process. The Ohio Consumers' Counsel Office said it will be impossible for consumers to know whether PJM is selecting the most efficient or cost-effective power plants.
Demand for electricity has spiked for the first time in decades, as tech companies competing in the artificial intelligence race pursue new power supplies for energy-hungry data centers.
On top of that, cryptomining, the broader electrification of society and bipartisan political pressure to bring manufacturing back to the U.S. are fueling new electricity demand.
PJM coordinates the electric grid through Delaware, eastern Kentucky, Maryland, New Jersey, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and Washington, D.C., as well as small portions of Illinois, Indiana, Michigan and North Carolina.
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Marc Levy, The Associated Press
