Wed, May 13

NEWS: AI Boom Shows Top US Grid 'Too Big to Function,' Regulator Says

PJM’s capacity crisis is reaching a boiling point. (Bloomberg)

  • FERC Chair Laura Swett warned that PJM may have “grown too big to function” as it struggles to handle AI-driven load growth, high power bills, and mounting pressure from states and utilities.

  • Why it matters: Many stakeholders (and apparently FERC) are increasingly frustrated with PJM’s cost-sharing framework and queue delays—AEP is even weighing an exit from the market.

  • What’s next: FERC will hold a July 23 conference on PJM reforms, Swett announced. She frames the grid’s dysfunction as more than a regional market problem—Swett thinks it’s a threat to US AI leadership.

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