Demand on largest US power grid forecast close to winter record

By Tim McLaughlin and Laila Kearney

Jan 30 (Reuters) – Power demand on the largest U.S. electric grid is expected to peak just shy of the all-time winter record on Friday, as the PJM Interconnection region covering one in five Americans endures an unusually harsh and prolonged cold spell.

PJM manages the flow of electricity across 13 Midwest and Mid-Atlantic states, and prices in the market affect the power bills for roughly 67 million people.

The grid operator forecasted demand at a high of 141 gigawatts on Friday, with continued Arctic weather likely keeping electricity use high through February 2. PJM has so far navigated a snowstorm and 10 days of frigid weather without ordering any rolling blackouts. 

“PJM continues to work with its generation and transmission owners to prepare for frigid operating conditions,” the grid operator said in a statement.

Electricity generators and transporters have scrambled through the week to keep power running through the PJM system as icy and windy weather drove up demand, while limiting supplies of natural gas fuel sources.

Generation outages on the grid were expected to be about 15 gigawatts on Friday, or around 11% of total committed capacity. Generation outages topped 22 GW on Monday, according to PJM data. Outages for the weekend were expected to range from 11 GW to 14 GW, its forecast said.

Earlier this week, PJM predicted its all-time winter record for demand would be smashed on Friday, forecasting 148 GW of electricity consumption. PJM’s record for the season is 143.7 GW, set in January 2025.

PJM ratcheted down those forecasts as temperatures in some parts of its territory were not as cold as expected. Data centers were also encouraged by the U.S. Department of Energy to use back-up generators, which would ease the strain on PJM’s resources. 

PJM’s performance has been closely watched partly because of its heavy concentration of data centers, whose energy consumption is climbing faster than the grid can manage, contributing to higher power prices.

Spot wholesale electricity prices in PJM were about $173 per MWh on Friday, far below spikes seen earlier in the week that topped $3,000 per MWh.

PJM and electric grids in New York and New England have had to navigate congested high-voltage lines throughout their territories. Temperatures hovering above 0 degrees Fahrenheit (-18 Celsius) this week have caused power line overloads from a surge in electricity demand. Cold weather also cut the capacity of power plants in PJM’s territory.

(Reporting By Tim McLaughlin and Laila Kearney; Editing by Emelia Sithole-Matarise and David Gregorio)