(Reuters) – Grid operator PJM Interconnection responded on Tuesday to a complaint from Pennsylvania Governor Josh Shapiro about energy market rules, citing concerns about possible power shortages due to the rapid expansion of data centers.
Shapiro had filed a complaint with the Federal Energy Regulatory Commission on Monday, arguing that the largest U.S. power grid operator should change its market rules to avoid a potential increase in electricity costs.
“We have been warning for more than two years about the prospect that parts of our country could go without power during periods of high demand,” PJM said in a statement.
“This possibility has increased, primarily due to state and federal policy decisions that are pushing manufacturers to retire prematurely, and also due to unprecedented and rapidly growing data center construction,” the network operator added.
The company has sought permission from federal regulators to lower the market price ceiling and has proposed faster integration of next-generation projects to mitigate issues such as power shortages during periods of high demand.
PJM, which serves nearly 65 million people in the U.S., has faced increased public criticism since July when it said its annual capacity auction would lead to record high payments to power plants within its system.
