Regional grid operator PJM has procured more than enough electric generation capacity to meet peak power needs this summer, plus a healthy reserve margin.

Last year PJM raised its generation reserve margin considerably – from about 15% to about an 18% safety cushion over peak needs – and met it. PJM also increased its load forecast for even more safety margin, discounted generation contributions from coal, solar, gas, nuclear, and wind resources – creating yet even more safety margin – and also is raising regional electric bills by $12 billion per year starting this summer to attract new generation amidst other reforms. However, PJM’s staid description of the expensive cushioning and forthcoming rule changes to increase electric generation, that it has “adequate resources available for summer,” is still receiving hyperbolic treatment in the press, creating impressions of an imminent grid crisis.

The facts: PJM is richly paying electric generators to meet the region’s peak electric needs, even in extreme cases, and with plentiful cushion. The rich payments will hit all Ohio manufacturer electric bills starting this summer. Read more from OMA energy engineering consultants Runnerstone. 5/12/2025