White House, Bipartisan Governors Press PJM to Hold Auctions to Curb AI-Driven Power Shortages and Price Spikes
White House and bipartisan governors seek to force PJM to hold auctions letting tech firms contract to build generation to curb AI-driven shortages, price spikes
Overview
Who/What: The White House National Energy Dominance Council, Energy and Interior secretaries and bipartisan governors — including Pennsylvania’s Josh Shapiro and Virginia’s Glenn Youngkin — urged PJM to run emergency capacity auctions.
When/Where: Officials will sign a statement of principles at a Friday White House event; PJM was not invited and declined to attend, and President Trump’s attendance was unclear.
Why: Supporters warn AI data center demand could triple, driving outages and sharp price spikes; consumer advocates say ratepayers are already underwriting billions without new generation delivered.
How: The plan would compel PJM to offer 15-year capacity contracts in auctions so technology companies could bid to finance, build and connect new power plants, with backstop procurement cited.
Impact: The move aims to shield consumers from rising bills ahead of pivotal November contests, amid reports utilities sought over $34 billion in rate increases through the first three quarters of 2025.
Analysis
Center-leaning sources collectively frame the story as a consumer-protection and political-priority narrative that balances administration urgency with practical skepticism. Editorial choices—such as prominent, evaluative headlines (“may not use”), foregrounding officials’ statements (source content), and juxtaposing PJM’s reluctance with consumer-advocate concerns—shape emphasis and implied doubts about feasibility.
Sources (20)
FAQ
PJM Interconnection is a regional transmission organization (RTO) that operates the wholesale electricity market across parts of 13 states and D.C., ensuring reliable electricity supply through capacity auctions like the Base Residual Auction.
PJM's capacity auctions, such as the Base Residual Auction held every May three years in advance, procure future electricity reserves by accepting bids from resources, setting a clearing price where supply meets demand to compensate generators.
To address AI data center demand potentially tripling power needs, causing outages and price spikes; the plan offers 15-year contracts for tech firms to build new generation, protecting consumers from bill increases amid $34B in utility rate hikes.
The White House National Energy Dominance Council, Energy and Interior secretaries, and bipartisan governors including Pennsylvania’s Josh Shapiro and Virginia’s Glenn Youngkin.
Recent auctions hit FERC price caps (e.g., $329/MW-day), cleared short of reliability needs by 6,623 MW, with delays in interconnection queues blocking new generation amid rising demand.
History
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