Future Regional Power Supply Down, but Not Out

[Photo: American Public Power Association/Unsplash]

“Shrinking power supply remains a challenge according to the grid operator’s most recent capacity auction, signaling that regional utility bills could still climb, albeit more slowly, as demand for electricity grows faster than can be provided,” The Center Square reported. PJM’s 2028-2029 Base Residual Auction cleared at the federally approved $325 per MW-day price cap—2.5% below the prior auction—while securing 6,831 MW less capacity than needed to meet its one-in-10-year reliability target for the second straight year.

The shortfall and continued supply-demand imbalance carry particular weight for Northern Virginia, where data center expansion is a primary driver of rising load across the 13-state PJM region that includes the commonwealth. PJM is advancing measures to clear its interconnection queue, accelerate high-priority generation, and develop flexible connection frameworks for large users in an effort to restore balance and limit cost pressure on everyday customers.

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Author

Uriah Kiser

I'm the Founder and Publisher of Potomac Local News. Raised in Woodbridge, I'm now raising my family in Northern Virginia and care deeply about our community. If you're not getting our FREE email newsletter, you are missing out. Subscribe Now!

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