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CHICAGO - A big change is coming to how a power grid that serves Chicago tracks and manages huge new electricity users, but the most controversial parts of the plan were blocked by federal regulators at the Federal Energy Regulatory Commission (FERC).
What’s changing for Chicago’s power grid
Big picture view:
Starting Monday, Oct. 12, PJM Interconnection — the regional grid operator serving Chicago and much of the Midwest and East Coast — will launch a new "Large Load Registry", according to Utility Dive.
The registry is a database where utilities must report customers using large amounts of electricity at a single site, such as a data center or factory.
The idea is to help PJM keep tabs on where these big power users are popping up so it can plan ahead and avoid surprises that could strain the grid.
Why PJM wanted more control over big users
What they're saying:
PJM says the region is facing a crunch starting in 2027, mostly because of the explosion of new data centers that use massive amounts of electricity. Its original plan included rules that would have forced these big new users to line up extra power or risk being shut off first during emergencies.
But federal regulators said PJM went too far, especially when it came to telling states and local utilities which customers to cut off and how to set rates. That part of the plan was rejected.
PJM’s registry will still give it more info about where the biggest power users are, but it won’t let them force those users to cut back before everyone else if the grid gets tight.
What this means for Chicago homes and businesses
Why you should care:
For now, if there’s a power emergency, PJM can’t single out big new users like data centers to be shut off before homes, hospitals or schools. Regulators said it’s up to state officials to decide who gets cut off first if things get bad.
David Rosner, a FERC commissioner, told Utility Dive that in an emergency, data centers not serving critical functions should be shut off before ordinary customers. But he also said it’s up to state regulators to set those rules.
"We need state regulators to establish clear rules for which customers should be curtailed first when circumstances require it," Rosner said. "And we need PJM to be ready to adjust their operations to this evolving paradigm. But such measures should only be taken when necessary to keep the system reliable, after voluntary demand response resources have been exhausted."
No clear answer on electric bills
What we don't know:
The big question for people in Chicago is whether this will make their electric bills go up. Right now, there’s no answer. The order doesn’t say how much, if anything, customers will pay because of these changes. It also doesn’t say if PJM will try again with a new plan to handle the power crunch.
PJM says the new registry will help them plan better and keep the grid reliable, but without the rejected rules, it’s not clear how they’ll handle the expected shortfall in power starting in 2027.
There’s a lot of debate about whether big new users like data centers should have to pay more or be the first to cut back when the grid is stressed. For now, those decisions are on hold.
The Source: Information for this article comes from an order by the Federal Energy Regulatory Commission and Utility Dive. This story was reported from Eden Prairie, Minnesota.