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PUC warns of potential capacity shortfall as data centers and interconnection delays strain PJM grid

2483999 · March 4, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

PUC leaders told the House Appropriations Committee that interconnection backlogs, rapid retirements of thermal plants and a surge in data-center load could create a 30–40 gigawatt shortfall in the PJM footprint within years, driving higher capacity auction prices and raising risk of localized supply shortages.

The Pennsylvania Public Utility Commission told the House Appropriations Committee that rapid load growth from data centers, slow interconnection of new generation and retirements of thermal plants together risk a large capacity shortfall in the PJM regional grid.

PUC Chairman Steve DeFrank told lawmakers that the commission and PJM are seeing a combination of factors — interconnection queue backlogs, faster thermal retirements and rising demand driven by data centers — that have pushed the PJM capacity market price sharply higher and could produce a 30- to 40-gigawatt shortfall over the coming years. "That $270 clearing price . . . the market's saying build generation," DeFrank said, referring to the capacity auction results.

The committee’s exchange highlighted three linked problems: (1) a backlog in PJM’s interconnection queue that delays bringing ready projects online; (2) a…

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