Ohio's power grid operator warns of potential power shortages this summer

Yahoo

13-05-2025

COLUMBUS, Ohio (WCMH) — A power grid operator for Ohio and other states said plenty of resources are available to meet typical peak summer electricity demand but warned that there are 'extreme scenarios' in which generation capacity may fall short.
PJM, a regional transmission organization that coordinates the movement of electricity across Ohio and 12 other states, said it expects summer usage to peak at about 154,000 megawatts. The company said one megawatt can power about 800 homes.
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The company expects to have enough reserves to meet that demand, but noted it's the first time in PJM's annual assessment that 'generation capacity may fall short of required reserves in an extreme planning scenario that would result in an all-time PJM peak load over 166,000 MW.'
The company is concerned about the imbalance of supply and demand due to the lack of building new resources and generator retirements.
'This outlook at a record peak heat scenario reflects our years-long and mounting concerns as we plan for enough resources to maintain grid reliability,' Executive Vice President of Operations, Planning and Security Aftab Khan said in a statement. 'All resources within PJM's footprint should be prepared to respond when called upon.'
If the 'extreme scenario' were to happen, PJM would use 'contracted demand response programs' to meet its needs.
'Demand response programs pay customers who have opted in to reduce their electricity during system emergencies,' PJM said.
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The National Weather Service expects the summer months to be hotter than normal along parts of the East Coast. PJM said it has about 179,200 megawatts of generation capacity over the summer, plus another 7,900 megawatts of contracted demand response resources.
PJM's long-term load forecast predicts a massive jump in peak demand over the next 15 years.
'This forecast captures the dramatic increases in future energy demand, as evidenced by the last two years when data center development has grown exponentially,' Khan said.
AEP Ohio has blamed PJM for customer bill increases that will go into effect in June. PJM does not generate electricity, but coordinates how electricity is transmitted to help meet electricity demand.
'In a recent auction, the entire PJM region saw significant increases in the price of electricity generation capacity compared with previous auctions,' AEP Ohio stated. 'This cost is always passed to customers dollar-for-dollar, with no markup or profit for AEP Ohio.'
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AEP estimates that beginning in June, customers who use 1,000 kWh of electricity per month would see their monthly bills increase by about $27.
Ohio lawmakers recently passed House Bill 15 — awaiting Gov. Mike DeWine's signature — which aims to address energy shortages and growing demand. It would also repeal the remaining portions of HB 6 (2019), which landed the state's former speaker of the House in federal prison.
The remaining portions subsidize two Ohio Valley Electric Corporation coal plants on the backs of Ohio ratepayers. One of the plants is in Ohio, the other in Indiana. The Ohio Consumers' Counsel estimates that the amount Ohioans have paid since January 2020 is more than $464 million to date. Ohio Republican leaders have been at odds since the scandal unfolded about the remaining portions of the law.
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