{"id":43902,"date":"2025-10-23T16:36:40","date_gmt":"2025-10-23T21:36:40","guid":{"rendered":"https:\/\/www.citizensutilityboard.org\/?p=43902"},"modified":"2025-10-23T17:30:11","modified_gmt":"2025-10-23T22:30:11","slug":"data-center-concerns-cub-nrdc-experts-warn-pjm-states-could-get-hit-with-forced-blackouts-163b-in-additional-electricity-capacity-costs","status":"publish","type":"post","link":"https:\/\/www.citizensutilityboard.org\/blog\/2025\/10\/23\/data-center-concerns-cub-nrdc-experts-warn-pjm-states-could-get-hit-with-forced-blackouts-163b-in-additional-electricity-capacity-costs\/","title":{"rendered":"Data center distress: CUB, NRDC experts warn PJM states could get hit with forced blackouts, $163B in electricity capacity costs"},"content":{"rendered":"
\"\"<\/a>

A new analysis by NRDC found that data center growth could result in a total of $163 billion in cumulative capacity costs from 2028 through 2033–including $21.4 billion for ComEd territory in northern Illinois. That translates to a $70-per-month increase for the average household. Click the image to read a fact sheet. <\/em><\/p><\/div>\n

Record new demand from data centers is driving up energy costs and concerns about reliable power supply. Preliminary utility forecasts in PJM Interconnection, the largest power grid operator in the country, show that data centers could require more than 50 gigawatts<\/a> <\/strong>of peak electricity capacity by 2030 \u2014 enough to power more than 20 million households, or approximately all the homes in New Jersey, Pennsylvania, Ohio, Virginia, and Maryland combined.<\/p>\n

At a media briefing<\/strong><\/a> hosted by Consumers for a Better Grid<\/a><\/strong> on October 22, experts from the Citizens Utility Board of Illinois and the Natural Resources Defense Council (NRDC) provided context for what is at stake for consumers and grid reliability if skyrocketing data center energy demand isn\u2019t addressed, and provided potential solutions that put consumers first.<\/p>\n

The panelists noted that electricity demand from proposed data centers is the primary reason for recent electricity bill spikes for residents living in PJM states, according to PJM\u2019s Independent Market Monitor. Steeply increasing forecast data center growth was responsible<\/a><\/strong> for $9.3 billion of a $14 billion regional capacity bill<\/a><\/strong> in 2025\/26, and hitting the higher market cap<\/a><\/strong> starting in the summer of 2028 will result in a total of $163 billion cumulatively<\/a><\/strong> in capacity costs through 2033 (including $21.4 billion for ComEd territory in northern Illinois). That translates to a $70-per-month increase for the average household, according to NRDC. (See this fact sheet<\/strong><\/a>\u00a0for more details.)<\/p>\n

PJM is currently evaluating options to address this new load demand in a process called the Critical Issue Fast Path (CIFP). Any decisions made during this process will have huge ramifications on consumers\u2014from the price of electricity, to how to deal with who doesn\u2019t get electricity supply during times of high demand, to what types of new energy sources are added or fast-tracked for development.<\/p>\n

PJM\u2019s current proposal does not require data centers to reduce energy consumption during peak demand times, which could lead to rolling blackouts. PJM is also proposing a 10-month fast track for new resources, meaning these projects will effectively \u201cjump\u201d the Interconnection Queue, which primarily comprises clean energy projects that have been waiting over five years for approval.<\/p>\n

A better approach, as noted by Consumers for a Better Grid, would require data centers to cover their own costs and bring their own capacity, utilize energy efficiency and demand flexibility, and improve load forecasting to prevent overpaying.<\/p>\n

Speakers included Claire Lang-Ree<\/strong>, Advocate for the Sustainable FERC Project, Natural Resources Defense Council and Clara Summers<\/strong>, Consumers for a Better Grid Campaign Manager, Citizens Utility Board of Illinois.<\/p>\n

\n

Quotes from speakers:<\/strong><\/p>\n

Claire Lang-Ree, Advocate for the Sustainable FERC Project, Natural Resources Defense Council:
\n<\/em><\/strong>\u201cAverage utility bills have already increased by $20 to $30 due to the price increase that we saw in the last auction, and this problem will just get worse through the coming decade if nothing is done. We’re estimating that average bills could increase by another $70 per month.\u201d<\/p>\n

\u201cIt\u2019s hard to overstate what\u2019s at stake here. The basic problem in PJM is that projected demand is outpacing supply.\u201d<\/p>\n

\u201cWhen we talk about reliability, sometimes it can be difficult to understand, does that mean blackouts? Does that mean high scarcity pricing periods? The answer is that it’s all of the above.\u201d<\/p>\n

\u201cThe amount of money PJM residents will pay for old power plants is about as much as it would cost to build brand-new zero-emission electricity and storage to power data centers.\u201d<\/p>\n

Clara Summers, Consumers for a Better Grid Campaign Manager, Citizens Utility Board of Illinois:
\n<\/em><\/strong>\u201cUnless something is done, everyday people will be left holding the check for some of the wealthiest companies in the world, and that’s unacceptable.\u201d<\/p>\n

\u201cIf data centers are allowed to contract with existing generation to serve their demands specifically, that means that there’s less available capacity for the rest of us, and prices go up even more.\u201d<\/p>\n

\u201cIf the question is, \u2018Which resource is the fastest to build,\u2019 the answer is \u2018Not gas.\u2019 It\u2019s actually battery storage.\u201d<\/p>\n

\u201cThis is a billion-dollar issue that we need to address\u2026There are ways to reliably and affordably integrate new demand from data centers, but they have to be good grid citizens. Since these are some of the wealthiest companies in the world, they should be able and willing to carry their costs.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Record new demand from data centers is driving up energy costs and concerns about reliable power supply. Preliminary utility forecasts in PJM Interconnection, the largest power grid operator in the country, show that data centers could require more than 50 gigawatts of peak electricity capacity by 2030 \u2014 enough to power more than 20 million households, or approximately all the homes in New Jersey, Pennsylvania, Ohio, Virginia, and Maryland combined. At a media briefing hosted by Consumers for a Better Grid on October 22, experts from the Citizens Utility Board of Illinois and the Natural Resources Defense Council (NRDC) provided context for what is at stake for consumers and grid reliability if skyrocketing data center energy demand isn\u2019t addressed, and provided potential solutions that put consumers first. The panelists noted that electricity demand from proposed data centers is the primary reason for recent electricity bill spikes for residents living in PJM states, according to PJM\u2019s Independent Market Monitor. Steeply increasing forecast data center growth was responsible for $9.3 billion of a $14 billion regional capacity bill in 2025\/26, and hitting the higher market cap starting in the summer of 2028 will result in a total of $163 billion cumulatively in capacity costs through 2033 (including $21.4 billion for ComEd territory in northern Illinois). That translates to a $70-per-month increase for the average household, according to NRDC. (See this fact sheet\u00a0for more details.) PJM is currently evaluating options to address this new load demand in a process called the Critical Issue Fast Path (CIFP). Any decisions made during this process will have huge ramifications on consumers\u2014from the price of electricity, to how to deal with who doesn\u2019t get electricity supply during times of high demand, to what types of new energy sources are added or fast-tracked for development. PJM\u2019s current proposal does not require data centers to reduce energy consumption during peak demand times, which could lead to rolling blackouts. PJM is also proposing a 10-month fast track for new resources, meaning these projects will effectively \u201cjump\u201d the Interconnection Queue, which primarily comprises clean energy projects that have been waiting over five years for approval. A better approach, as noted by Consumers for a Better Grid, would require data centers to cover their own costs and bring their own capacity, utilize energy efficiency and demand flexibility, and improve load forecasting to prevent overpaying. Speakers included Claire Lang-Ree, Advocate for the Sustainable FERC Project, Natural Resources Defense Council and Clara Summers, Consumers for a Better Grid Campaign Manager, Citizens Utility Board of Illinois. Quotes from speakers: Claire Lang-Ree, Advocate for the Sustainable FERC Project, Natural Resources Defense Council: \u201cAverage utility bills have already increased by $20 to $30 due to the price increase that we saw in the last auction, and this problem will just get worse through the coming decade if nothing is done. We’re estimating that average bills could increase by another $70 per month.\u201d \u201cIt\u2019s hard to overstate what\u2019s at stake here. The basic problem in PJM is that projected demand is outpacing supply.\u201d \u201cWhen we talk about reliability, sometimes it can be difficult to understand, does that mean […]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":"","_wpscppro_dont_share_socialmedia":null,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"default","_twitter_share_type":"default","_linkedin_share_type":"default","_pinterest_share_type":"default","_linkedin_share_type_page":"","_instagram_share_type":"default","_medium_share_type":"default","_threads_share_type":"default","_google_business_share_type":"default","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[1194],"tags":[1814,391],"class_list":["post-43902","post","type-post","status-publish","format-standard","hentry","category-power-grid","tag-data-centers","tag-pjm"],"cp_meta_data":{"_facebook_share_type":["default"],"_twitter_share_type":["default"],"_linkedin_share_type":["default"],"_pinterest_share_type":["default"],"_instagram_share_type":["default"],"_medium_share_type":["default"],"_threads_share_type":["default"],"_google_business_share_type":["default"],"_wpsp_custom_templates":["a:7:{s:8:\"facebook\";a:3:{s:8:\"template\";s:0:\"\";s:8:\"profiles\";a:0:{}s:9:\"is_global\";b:0;}s:7:\"twitter\";a:3:{s:8:\"template\";s:0:\"\";s:8:\"profiles\";a:0:{}s:9:\"is_global\";b:0;}s:8:\"linkedin\";a:3:{s:8:\"template\";s:0:\"\";s:8:\"profiles\";a:0:{}s:9:\"is_global\";b:0;}s:9:\"pinterest\";a:3:{s:8:\"template\";s:0:\"\";s:8:\"profiles\";a:0:{}s:9:\"is_global\";b:0;}s:9:\"instagram\";a:3:{s:8:\"template\";s:0:\"\";s:8:\"profiles\";a:0:{}s:9:\"is_global\";b:0;}s:6:\"medium\";a:3:{s:8:\"template\";s:0:\"\";s:8:\"profiles\";a:0:{}s:9:\"is_global\";b:0;}s:7:\"threads\";a:3:{s:8:\"template\";s:0:\"\";s:8:\"profiles\";a:0:{}s:9:\"is_global\";b:0;}}"],"classic-editor-remember":["classic-editor"],"_edit_lock":["1761260607:5"],"_edit_last":["5"],"_wp_page_template":["default"],"borntogive_page_header_show_hide":["2"],"borntogive_pages_title_show":["1"],"borntogive_pages_Choose_slider_display":["2"],"borntogive_pages_select_revolution_from_list":["3"],"borntogive_pages_slider_pagination":["yes"],"borntogive_pages_slider_auto_slide":["yes"],"borntogive_pages_slider_direction_arrows":["yes"],"borntogive_pages_slider_effects":["fade"],"borntogive_pages_body_bg_wide":["0"],"borntogive_pages_body_bg_repeat":["repeat"],"borntogive_pages_content_bg_wide":["0"],"borntogive_pages_content_bg_repeat":["repeat"],"borntogive_pages_social_show":["1"],"borntogive_strict_no_sidebar":["0"],"borntogive_sidebar_columns_layout":["3"],"borntogive_gallery_slider_pagination":["yes"],"borntogive_gallery_slider_auto_slide":["yes"],"borntogive_gallery_slider_direction_arrows":["yes"],"borntogive_gallery_slider_effects":["fade"],"_wpb_vc_js_status":["false"],"_wpscppro_custom_social_share_image":[""],"_wpscppro_dont_share_socialmedia":["off"],"_wpsp_is_facebook_share":["off"],"_wpsp_is_twitter_share":["off"],"_wpsp_is_linkedin_share":["off"],"_wpsp_is_pinterest_share":["off"],"_selected_social_profile":["a:0:{}"],"_yoast_wpseo_primary_category":["1194"],"_yoast_wpseo_content_score":["30"],"_yoast_wpseo_estimated-reading-time-minutes":["4"],"_wpb_post_custom_layout":["default"]},"_links":{"self":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/posts\/43902","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/comments?post=43902"}],"version-history":[{"count":2,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/posts\/43902\/revisions"}],"predecessor-version":[{"id":43910,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/posts\/43902\/revisions\/43910"}],"wp:attachment":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/media?parent=43902"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/categories?post=43902"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/tags?post=43902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}