America’s largest power grid, PJM Interconnection, faces strain from data center and AI chatbot power consumption. Electricity bills could surge by over 20% this summer. Governor of Pennsylvania threatens to leave the grid, CEO exits, and board members ousted. PJM’s upcoming capacity auction could lead to even higher prices.

PJM’s supply and demand issues are attributed to state energy policies and data center growth. Prices remain high due to demand outpacing supply. New projects totaling 46 gigawatts have faced delays due to local opposition and financing issues. PJM has lost more than 5.6 net gigawatts in the past decade.

Power capacity rates have skyrocketed at PJM due to delayed auctions and an overload of renewable power project applications. Tech giants’ demand for power, like ChatGPT, has contributed to rising prices. Consumer advocates have filed complaints, and Pennsylvania may leave PJM. CEO Manu Asthana is set to depart in December.

PJM has implemented reforms such as capping prices and holding auctions every six months. Despite efforts to fast-track power projects, delays persist. Constellation Energy’s Three Mile Island nuclear plant, now Crane Clean Energy Center, may not start until 2027. Expert Joshua Macey criticizes PJM’s slow application processing.

Read more at Yahoo Finance: Analysis-America’s largest power grid is struggling to meet demand from AI