Overview
- PJM has repeatedly sought and used Section 202(c) emergency orders to force big customers onto onsite backup generation and to keep aging power plants running as demand outstrips available supply.
- Federal authority was broadened on January 22, 2026 to allow directing large customers to switch to their own backup generators during emergencies, making the tool usable against concentrated loads like data centers.
- Rapid data center growth in Northern Virginia and across the PJM region is driving sharp demand spikes and higher capacity prices, with the market monitor attributing a majority of recent price increases to data‑center load.
- Extreme heat is increasing forced outages on an aging fleet, and operators have relied on older units kept past retirement and on customer generators to avoid blackouts, a practice that shifts pollution burdens to nearby communities.
- Policy responses so far include short‑term procurements, faster interconnection efforts, tightened state permitting for backup generators, and canceled future offshore wind capacity, but no clear long‑term fix has yet emerged.