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White House, Governors Urge PJM to Hold Emergency 15-Year Auction for Tech-Funded Power Plants

The push aims to shield ratepayers from AI data center costs through long-term contracts borne by tech companies.

Overview

  • At a Friday event, the administration and bipartisan governors pressed PJM to run a special auction offering 15-year contracts for new generation that tech firms would finance, with officials estimating roughly $15 billion in projects.
  • The plan encourages extending caps on what existing power plants can charge in PJM to curb bill increases for consumers.
  • PJM said it was not invited to the White House event and is reviewing the nonbinding statement of principles.
  • Backers floated the possibility of holding the auction as soon as September, though PJM’s approval and potential regulatory review would be required.
  • Rising data center demand has driven record PJM capacity prices and reliability concerns, with Google citing interconnection delays of up to 12 years and testing colocation next to power plants.