Welcome to a new week. Nobody seems to agree on a solution for PJM’s massive data center pickle—not even our Daily readers. 40% said the grid operator should require long-term energy contracts, while 35% think PJM should let states cap costs (and reduce reliability).
FERC Chair Laura Swett’s take? She recently claimed the RTO is perhaps just “too big to function.” But the EC community begs to disagree: only 13% think it’s a good idea to shrink PJM’s capacity market—and the rest of you have a different suggestion entirely. Until a market reform plan arrives, it appears that the country’s biggest (literal) power struggle is stuck in the ring. 🥊
— Molly, Alex, and the Energy Central editorial team
Rate cases are changing. Explore why utilities are losing time and capital — and how top teams are responding
NextEra is (reportedly) in talks to acquire rival utility Dominion. (Bloomberg)
The deal: The country’s biggest utility (by market capitalization) could soon get even bigger—the combined enterprise would be worth over $400B, and it would increase NextEra’s PJM footprint.
The context: This deal would offer NextEra a major market comeback. In 2020, the company (unsuccessfully) tried to buy Duke. Recently, the broader power industry has seen a flurry of massive deals, including Constellation’s $16B acquisition of Calpine Corp.
For the first time in history, commercial power demand is poised to dethrone residential. (EIA)
Driven by the unrelenting data center rollout, US commercial electricity sales are forecast to grow 2.2% this year, tying residential consumption at 1,530 BkWh. As for next year? Commercial demand could climb another 5.3% and claim the crown.
This projection aligns with broader industry shifts—NEMA recently projected that total US power demand will skyrocket by over 55% through 2050.
Data centers are driving a 76% surge in PJM power prices—is it permanent? (E&E News)
Massive AI load in the nation’s largest grid market keeps outpacing supply. In Q1, this sent the cost of wholesale PJM power to $136.53/MWh. That’s up from $77.78/MWh during the same period in 2025.
Yikes: PJM’s independent market monitor warned that price impacts on mid-Atlantic and Midwestern customers "are not reversible"...and will get even worse if data center load issues aren’t addressed ASAP.
The structural imbalance: In PJM’s most recent two future capacity auctions, projected data center load spurred a $13B cost increase for ratepayers across the grid footprint.
Load growth, renewables, and extreme weather are pushing grids to evolve. Join Schneider Electric on May 19 to learn how utilities are using AI to plan faster, reduce risk, and improve grid resilience today.
The DOE is handing out $94M to beef up the domestic SMR supply chain. (DOE)
The agency is offering all that dough to eight companies. More than $40M will fund domestic manufacturing and supply chain boosts, including adding 200 mT of annual uranium capacity.
The remaining funds will help secure NRC-approved Early Site Permits for future reactor projects. Nebraska Public Power District is receiving $27.8M, for example.
Big picture: This is the latest distribution in a $900M federal effort to roll out SMRs in the US.
FERC won’t freeze the $1.5B in customer refunds owed by New England transmission owners. (Utility Dive)
The ruling: FERC rejected a joint request from Eversource, Avangrid, and other New England TOs to delay a $1.5B retroactive refund order. This stemmed from a 15-year legal battle over base returns on equity.
The commission sided with state advocates and upheld a firm customer repayment deadline of May 20, 2027. Eversource faces a hit up to $932M, and Avangrid owes $203M.
Worth watching: The utilities are waiting on a parallel appeal with the DC Circuit. If they win, they noted that they’d hit ratepayers with surcharges to claw all that cash back.
Canada is rolling out a C$1T grid overhaul to double its power capacity—and curb US reliance. (Reuters)
The nation wants to insulate its economy from President Trump’s trade tariffs. Ottawa will use fresh investment tax credits to build East-West transmission interties—and break the longstanding pattern of Canadian provinces trading more power with the US than with each other.
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Pressures like DER growth and two-way flows are pushing grids to their limits. Join the conversation to hear how Semtech uses edge intelligence, automation, and security to modernize faster—without costly system overhauls.
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Smarter meters are reshaping grid operations. Tune in on June 9 to find out how Sense turns real-time data into faster fixes, sharper decisions, and stronger customer programs across the grid.
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