(Reuters) – Grid operator PJM Interconnection on Tuesday responded to a complaint from Pennsylvania Gov. Josh Shapiro over energy market rules, citing concerns about potential power shortages due to the rapid expansion of data centers.
Shapiro filed a complaint with the Federal Energy Regulatory Commission on Monday, arguing that the largest U.S. grid operator needs to change its market rules to avoid a potential rise in electricity costs.
“We have been warning for more than two years about the potential for energy shortages in parts of our country during periods of high demand,” PJM said in a statement.
“This possibility has increased, primarily due to state and federal policy decisions pushing generators into premature retirement, as well as due to unprecedented and rapidly growing data center construction,” the grid operator added.
The company has requested permission from federal regulators to lower the maximum market price and has proposed faster integration of new generation projects to mitigate issues such as power shortages during periods of high demand.
PJM, which serves nearly 65 million people across the United States, has faced increased public scrutiny since July when it said its annual power auction would result in record-high payments for power plants within its system.
