PJM Board to Decide on Higher Bills for 67 Million Americans Due to Data Centers

VALLEY FORGE, PA – Today PJM members voted on 12 proposals as part of its Critical Issue Fast Path to address data center load on the electrical grid. None of the proposals passed, including the Protecting Ratepayers Proposal put forth by Senator Katie Fry Hester and NRDC (Natural Resources Defense Council.) Now it is up to the PJM board to decide on a final plan, which they aim to do by December.

The following is a reaction from Tom Rutigliano, senior advocate, Climate & Energy, NRDC:

“The growth of data centers is colliding with the reality of the power grid. PJM members weren’t able to see past their commercial interests and solve a critical reliability threat. Now the board will need to stand up and make some hard decisions. We hope they fulfill their obligation to 67 million people and commit to protecting reliability, not subsidize data centers at public expense, and treat all customers fairly.

“The public faces a $163 billion bill through 2033, and the region could suffer multiple rolling blackouts each year. If the board doesn’t step up, the region won’t be able to meet record demand and will suffer declining reliability for years to come.”

Background

PJM Interconnection, the nation’s largest power grid operator, oversees electricity markets for 67 million people across 13 states and the District of Columbia. Recently, the grid operator signaled that it has no spare electricity supply to meet surging demand from new data centers. If nothing is done, residents in PJM states could see forced blackouts and $163 billion in total electricity capacity costs hitting power bills from 2028–2032. 

Electricity rates are already surging; on June 1, consumers within the PJM footprint began seeing increases of as much as 29 percent on their power bills as the July 2024 capacity auction prices took effect. PJM forecasts that data centers will drive a need for more than 30 gigawatts of peak electricity capacity by 2030—enough to power more than 20 million households, or approximately all the homes in New Jersey, Pennsylvania, Ohio, Virginia, and Maryland.

NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law, and people power to confront the climate crisis, protect public health, and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Bozeman, MT, Beijing and Delhi (an office of NRDC India Pvt. Ltd). Visit us at www.nrdc.org and follow us on X @NRDC.