CHARLESTON, WV (LOOTPRESS) – The regional network that ensures the supply of electricity to West Virginia homes has concerns about future energy supplies as demand increases and energy sources shrink.
In a news release, PJM said it believes electricity supplies will be adequate for this winter, but added, “We are keenly aware of the challenges we face as system reserves continue to erode.”
PJM coordinates the delivery of electric power to customers in 13 states, including West Virginia, and Washington, D.C.
“PJM remains concerned that increasing demand, ongoing generator retirements and the slow pace of new projects coming online are tightening reserves,” it said.
Federal environmental regulations are threatening to shut down coal-fired electric generation faster than those facilities can be replaced by alternative energy production. Coal-firing provides 14.9 percent of the energy coordinated by PJM.
The PJM news release noted the importance of thermal resources, coal, natural gas and nuclear, and that they are essential for reliability.
“Since Winter Storm Elliott in December 2022, forecasted winter peak demand has risen by over 4,000 MW (megawatts), while the number of thermal generation resources have decreased. These combined factors add a degree of risk that generator failures on the level of Elliott could leave the system vulnerable to power outages.”
Sluggish demand growth of the past has been replaced by forecasts for dramatically increased demand in the future as more technology centers draw larger amounts of energy and additional pressure is exerted from increased reliance on electrification.
Increased demand for electricity while supply decreases likely will lead to higher electric bills for consumers in the future. The recent PJM capacity acquisition auction resulted in future capacity prices that are nearly ten times higher than current capacity prices. While West Virginia is partially insulated from the increase in PJM capacity market prices due to the availability of self-supplied capacity from utility owned generation plants, customers in neighboring PJM states will be impacted by the higher capacity prices. A report issued by the Maryland Office of Peoples Council warned that Maryland customers in the area served by Potomac Edison bordering West Virginia could see electric rate increases of 24 percent due to the increased PJM capacity prices. Maryland Office of People’s Counsel, Bill and Rate Impacts of PJM’s 2025/2026 Capacity Market Results & Reliability Must-Run Units in Maryland, August 2024.
https://opc.maryland.gov/Portals/0/Files/Publications/RMR%20Bill%20and%20Rates%20Impact%20Report_2024-08-14%20Final.pdf?ver=V9hZfyTmjLeNVt2Dg3cTgw%3d%3d accessed October 14, 2024.
