In this episode, I break down PJM's recent filing to the Federal Energy Regulatory Commission (FERC) for an Interim Resource Adequacy Service (IRAS)
. As massive new data center loads exert a tremendous pull on grid reliability, power quality, and energy prices, this interim proposal represents a major new regulatory mechanism to manage large electrical loads
.
Here are the key details from the proposal that I analyze in this video:
The Scale of the Problem: Out of 32 gigawatts of forecasted demand growth in PJM between 2024 and 2030, a massive 30 gigawatts of that growth is driven by data centers
.
What is IRAS? PJM’s proposed Interim Resource Adequacy Service focuses specifically on new Large Load customers (primarily data centers) that do not provide their own power supply
.
The Emergency Shedding Protocol: Under IRAS, during periods of high grid stress, PJM would initiate an emergency notification procedure
. This signals utilities to reduce or transfer the electricity demand of these new large loads before calling on standard demand response resources or proceeding to rotating blackouts
.
The "Build, Bring, or Buy" Standard: Large loads that do not bring new capacity or cover their demand through the upcoming Reliability Backstop Procurement will be subject to IRAS
. This matches the White House Ratepayer Protection Pledge to "build, bring, or buy" the generation resources needed to satisfy new energy demands
.
The Large Load Registry: PJM plans to maintain a registry to track large loads and furnish information to state regulators and utilities
. This allows state-level entities to manage retail load reduction and cost allocation while PJM retains the tools needed to handle grid reliability
.
Emergency Demand Reductions: If utilities do not acquire capacity equal to or above the combined peak demand of these new large loads, PJM would direct those specific zones to reduce demand proportionally during emergencies
. Large loads may also waive compensation for cutting demand to protect ratepayers from rising bills
.
The 2029/2030 Capacity Auction Shift: Starting in December with the 2029/2030 base residual capacity auctions, new large loads that arrive without the necessary power supply won't be included as demand when future power needs are calculated
.
The Ratepayer Cost Impact: Over the last four capacity auctions (mid-2025 to mid-2029), PJM's capacity charges totaled over $63 billion
. The Independent Market Monitor calculated that data loads drove up capacity costs by $29.4 billion—accounting for approximately 46% of total capacity payments
. Most of these data loads are currently only projected rather than actually built
. This December's auction results will give us a clear look at how data loads continue to impact ratepayer costs
.
If you find this analysis of grid reliability and energy regulation helpful, please like, subscribe, and leave a comment with your thoughts on how your region is handling data center load growth.

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In this episode, I break down three major developments on the Texas electric grid that are rapidly changing the landscape for large-power interconnections.

Here is what I unpack in today's analysis:

What is "Batch Zero"? I explain ERCOT's new vetting process requiring large load applicants over 75 MW (primarily data centers) to meet strict criteria before they can interconnect. To proceed, applicants must prove site control, show financial capability, submit an initial qualifying study, and pay a fee of $50,000 per megawatt of load.

The 500 GW Queue Reality Check: While ERCOT's interconnection queue recently reached a massive 500 GW, 294 GW was disqualified for failing to provide required details, leaving approximately 205 GW eligible for the Batch Zero study.

Governor Abbott's Mandate & The Regulatory Pause: I detail Texas Governor Greg Abbott’s directive ordering ERCOT and the PUC to audit all prospective data centers for their water and power consumption, alongside any tax benefits received, due to concerns about grid reliability.

ERCOT's "Good Cause Exception" Request: I discuss ERCOT's subsequent request to slow down the Batch Zero timeline while addressing these audit requirements, as well as their ask to continue processing 23 specific large-load projects to hold their place in line.

Market & Political Implications: I look at Bloomberg New Energy Finance’s estimate that this regulatory pause puts 20% of the U.S. data center pipeline at risk. Finally, I touch on how data center regulation is quickly evolving into a bipartisan issue across the country.

If you find this analysis helpful, please like, subscribe, and leave your thoughts in the comments below.

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🎙️ About Energy Future: Powering Tomorrow’s Cleaner World

Hosted by Peter Kelly-Detwiler, Energy Future explores the trends, technologies, and policies driving the global clean-energy transition — from the U.S. grid and renewable markets to advanced nuclear, fusion, and EV innovation.

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On July 2nd, the Texas power grid did something extraordinary: it shattered its all-time record peak, surging past 91,000 megawatts (91 GW). Even more surprising? ERCOT kept the lights on and prices remarkably low, all while adding almost no new fossil fuel capacity.
But as demand continues to skyrocket, is this grid stability a sustainable reality or a temporary dream?
In this episode, we go behind the scenes of the ERCOT dashboard to analyze exactly how Texas is surviving the summer heat, the secret weapon keeping wholesale prices in the $20 range, and the massive hurdles looming on the horizon.

What We Cover:
The 91 GW Record Smasher: Breaking down the massive July 2nd peak and how ERCOT managed the load without traditional fossil fuel additions.
The "Cowboy Hat" Grid: A look at the state's unique supply mix, where wind energy forms the nighttime brim and solar power makes up the midday crown.
The Battery Arbitrage Revolution: How Texas's rapidly growing battery fleet absorbs up to 8.5 GW of solar power in the morning and injects nearly 10 GW back into the grid during the crucial 7 PM to 11 PM evening peak.
Why Gas Generators are Struggling: How cheap solar and battery arbitrage are making it incredibly difficult for new dispatchable gas-fired plants to turn a profit.
The AI Data Center Threat & The $33B Battle: A look at Governor Abbott's recent directive to audit data centers for water and power usage, and the fierce political battle over the proposed $33 billion Permian Basin transmission expansion.

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🎙️ About Energy Future: Powering Tomorrow’s Cleaner World

Hosted by Peter Kelly-Detwiler, Energy Future explores the trends, technologies, and policies driving the global clean-energy transition — from the U.S. grid and renewable markets to advanced nuclear, fusion, and EV innovation.

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I have a confession to make: my past predictions about Vehicle-to-Grid (V2G) and Vehicle-to-Everything (V2X) technology have been way too optimistic.

Theoretically, the opportunity is massive. We have gigawatt-hours of batteries on wheels sitting idle in driveways more than 95% of the time. In fact, right now in the United States, there are over 250,000 bidirectional-capable GM electric vehicles on the road. At 10 kW of export capacity each, that is 25 megawatts of nameplate capacity sitting on wheels at a time when data centers are fighting over every single kilowatt of grid capacity.

So, why are personal EVs still completely locked out of the grid-scale energy transition?

In my latest episode, I dive deep into the real-world barriers holding this technology back—and the simple truth of what utilities are doing wrong.

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🎙️ About Energy Future: Powering Tomorrow’s Cleaner World

Hosted by Peter Kelly-Detwiler, Energy Future explores the trends, technologies, and policies driving the global clean-energy transition — from the U.S. grid and renewable markets to advanced nuclear, fusion, and EV innovation.

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The power grid is hitting its limits. In this episode, we break down the critical results of PJM’s capacity auction for the 2028/2029 delivery year, where the price cap of $325 per megawatt-day was hit for the third consecutive auction.

We examine the widening gap between skyrocketing electricity demand and lagging supply, and what this means for future grid reliability.

Key Topics Covered:

The 6,830 MW Shortfall: Discover why PJM cleared 149,181 MW of capacity, falling significantly short of its desired 20% reserve margin and leaving the grid at a tight 15% margin under worst-case scenarios.

The Data Center Cost Explosion: Actual and forecasted data center loads have added a staggering 6.3billiontothisauctionalone,makingup4629.4 billion) of all capacity-related charges over the last four auctions—costs that ultimately fall on everyday ratepayers.

The $555 Simulated Reality: Learn why PJM's simulated auction shows that without the current price cap, prices would have soared to $555/MW-day across most markets, and reached nearly $777/MW-day in the Chicago area.

Why New Generation is Sitting Out: We look at why only 525 MW of new supply cleared. Skyrocketing costs for gas turbines—which are up 15% in a single year and 50% over the last five years—combined with manufacturers being sold out through 2030, mean developers are struggling to build new generation.

The September Backstop Auction Loophole: We explain how developers might be bypassing the main auction to wait for September's Reliability Backstop Procurement (RBP) auction, which offers longer contracts (2 to 15 years) and a higher average price cap of $555.

The Order 2222 Mystery: We discuss the surprisingly low turnout of demand response and why absolutely zero aggregated distributed energy resources (DERs) showed up to the party, despite being eligible to participate for the first time.

As FERC Chair Laura Swett warns that this consecutive shortfall is an "alarm bell" for the industry, we ask the tough question: Is PJM’s complex system of price caps and regulatory patches sustainable, or are we heading toward a Texas-style market with no capacity guarantees at all?

If you enjoyed the video, please Like, Comment, and Subscribe to stay updated on the future of the energy grid!

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🎙️ About Energy Future: Powering Tomorrow’s Cleaner World

Hosted by Peter Kelly-Detwiler, Energy Future explores the trends, technologies, and policies driving the global clean-energy transition — from the U.S. grid and renewable markets to advanced nuclear, fusion, and EV innovation.

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for weekly market insights, in-depth articles, and energy analysis.

In this episode, we dive into the labyrinth of PJM's latest regulatory moves to address the insatiable electricity demand from data centers and the looming generation supply shortfall. We break down the newly approved Reliability Backstop Procurement (RBP) plan, which will allow utilities and large loads to secure capacity directly from suppliers through a one-time bilateral auction starting in the 2028-2029 delivery year.

Key topics covered in this video:

The New Auction Rules: Learn how load-serving entities will secure contracts spanning 2 to 15 years with a volume-weighted price cap set at $555 per megawatt-day.

The Price Jump: Discover why this new price cap is considerably higher than the current $325/MW-day limit, and how the sequential auction formula is designed to keep generators from getting too greedy and gaining immense leverage.

The Supply Chain Reality Check: We explore PJM's recent white paper, "Powering Reliability Through Market Design," which reveals that the estimated Cost of New Entry (CONE) for new gas-fired turbines has nearly doubled due to overwhelmed global supply chains.

The Risk of Capital Flight: Could capping prices at $555 simply push energy developers to invest in supply resources in other states or countries with better revenue opportunities?

The Future of Energy Markets: We discuss whether this crisis will eventually push PJM toward a Texas-style approach with no capacity market at all, and examine the irony of calling today's highly complex energy landscape "deregulated"

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🎙️ About Energy Future: Powering Tomorrow’s Cleaner World

Hosted by Peter Kelly-Detwiler, Energy Future explores the trends, technologies, and policies driving the global clean-energy transition — from the U.S. grid and renewable markets to advanced nuclear, fusion, and EV innovation.

💡 Stay Connected
Subscribe wherever you listen — including Spotify, Apple Podcasts, Amazon Music, and YouTube.

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Visit peterkellydetwiler.com
for weekly market insights, in-depth articles, and energy analysis.

The unprecedented rise of AI and massive data centers is putting severe strain on the electric grid, prompting a major regulatory crackdown
. Large loads pose a unique threat because they are huge (sometimes requiring gigawatts of power), desperate for quick interconnection, and highly unpredictable due to the prevalence of "phantom loads"—projected facilities that sit in interconnection queues but may never actually be built
. Furthermore, these large language model operations can physically destabilize the grid by interfering with the 60-hertz sine wave and abruptly snapping offline during minor power quality fluctuations, which has already caused over-frequency events
.
To bring order to this chaotic "land rush" for power, the Federal Energy Regulatory Commission (FERC) has issued a show cause order under Section 206 of the Federal Power Act
. The directive targets six major regional grid operators: PJM, MISO, SPP, CAISO, ISO-NE, and NYISO
. Finding that current tariffs are likely "unjust and unreasonable," FERC is demanding that grid operators either justify their existing rules or file reforms within 60 days
.
FERC requires the grid operators to address five specific categories of reform:
Developing more efficient transmission study processes and evaluating Grid Enhancing Technologies (GETs) to maximize existing grid capacity without waiting for multi-year physical upgrades
.
Providing greater cost transparency to ensure the massive infrastructure costs of these upgrades are not unfairly shifted to everyday ratepayers
.
Accommodating co-location agreements, establishing clear procedures for data centers that bypass traditional grids to build directly next to power plants
.
Creating new transmission services for flexible loads that can throttle their operations or switch to onsite batteries to support grid reliability
.
Developing a transparent process to study how local grid stability is impacted when massive new loads are placed close to existing generation assets
.
In addition to the 60-day reform deadline, the grid operators have just 30 days to submit a detailed report outlining how they will ensure sufficient generation exists to serve both everyday users and these massive new data centers
. Ultimately, the mandate is designed to force grid planners to look at best practices across the country and implement rigorous rules so that existing ratepayers do not get hurt by the rapid expansion of AI technologies

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🎙️ About Energy Future: Powering Tomorrow’s Cleaner World

Hosted by Peter Kelly-Detwiler, Energy Future explores the trends, technologies, and policies driving the global clean-energy transition — from the U.S. grid and renewable markets to advanced nuclear, fusion, and EV innovation.

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for weekly market insights, in-depth articles, and energy analysis.

General Motors has officially entered the grid storage market with a strategic investment in Peak Energy to manufacture next-generation sodium-ion batteries. With electricity demand rising and data centers consuming a growing share of US power, the battery conversation is shifting from familiar EV metrics to long-term grid reliability and affordability.

In this episode, we break down why GM's VP of Battery & Sustainability, Kurt Kelty, believes sodium-ion will be a "defining chemistry" for the future. We explore the massive advantages of sodium-ion technology, including its lower cost, stability over broad temperature ranges, and an incredible estimated 20,000-cycle lifespan, meaning they could last a half-century before needing replacement. Plus, because they have the potential to operate without active cooling, these systems require far less hardware, maintenance, and parasitic energy losses.

We also look at the booming US battery energy storage market, which hit a record 9.7 GWh in Q1 2026, and discuss the newly launched American Battery Leadership Coalition, an industry group pushing for US-made sodium-ion technology to reduce reliance on the Chinese supply chain. GM plans to prototype these stationary storage cells by late 2026, aiming for commercialization by 2028.

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🎙️ About Energy Future: Powering Tomorrow’s Cleaner World

Hosted by Peter Kelly-Detwiler, Energy Future explores the trends, technologies, and policies driving the global clean-energy transition — from the U.S. grid and renewable markets to advanced nuclear, fusion, and EV innovation.

💡 Stay Connected
Subscribe wherever you listen — including Spotify, Apple Podcasts, Amazon Music, and YouTube.

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Visit peterkellydetwiler.com
for weekly market insights, in-depth articles, and energy analysis.