A significant heat dome is currently impacting the Eastern United States, with temperatures expected to exceed 100°F (38°C) from New York to Virginia, straining power grids and causing electricity prices to soar. In New York City, prices climbed above $1,100 per megawatt-hour, while in Virginia, spot wholesale electricity prices in the PJM Interconnection grid surged from approximately $40 per MWh to over $600 per MWh, and were expected to top $1,000 per MWh later in the day. This surge in prices is largely attributed to increased air conditioning use and the high demand from data centers, particularly concentrated in northern Virginia.
In response to the escalating demand, grid operators are implementing emergency measures. PJM Interconnection, the largest US electric grid serving 67 million people across 13 states and Washington, D.C., anticipates demand to reach a record 166.3 gigawatts on Thursday evening, surpassing its 2006 summer record of 165,563 megawatts. The US Department of Energy has approved PJM's request for an emergency order, allowing transmission operators to curtail electricity use by data centers and other large customers with backup generation, if necessary, before resorting to broader emergency measures. PJM has also received temporary relief from some environmental permit restrictions for power plants through July 3rd to enhance generation flexibility.
Other regional grid operators are also preparing for the heatwave's impact. The New York Independent System Operator (NYISO) has asked customers to conserve power during peak hours, expecting demand to peak at over 32 GW, just shy of its 2013 record of 34 GW. The Midcontinent Independent System Operator (MISO) is also monitoring conditions as electricity demand is expected to challenge its records. The situation is further complicated by the shutdown of the Champlain Hudson Power Express transmission line, designed to bring hydropower from Quebec to New York, which temporarily reduced New York's electricity supply by up to 20%.
