Could Coal Power Save Consumers from High Bills?
The electric grid in PA is facing a problem. The state’s grid operator, PJM, has been battling low supply and rising costs for years. And now, reliability issues are front and center. Earlier this month, the Department of Energy declared a grid emergency in the state. Combined with the recent PA PUC warning on data centers, state lawmakers are in a panic. And as a result, they’re looking to reactivate old coal power plants to keep the lights on. But some question whether coal can really combat rising electricity rates and demand for power.
PA Power Grid Emergency
Earlier this month, a combination of high demand, low capacity, planned shutdowns, and power line repairs all lead to a danger of blackouts in the PJM Interconnection. And while this is the first time supply has become an emergency, it’s almost certainly not the last.
To maintain reliability, PJM must plan on how much extra power they would need in case of “once in ten year events” such as severe weather. While this should ensure that the grid works during a crisis, PJM has fallen 6.8 gigawatts (GW) short of their reliability need. This is the second year in a row that PJM did not secure enough power to guarantee reliability. And so on top of soaring electricity bills, regular blackouts could become a reality unless the state finds more power plants.
PA Looks to Coal Power to Solve Energy Crisis
In response, the PA PUC has launched the Pennsylvania Accelerated Transmission and Energy Redevelopment (PATER) study. The study began looking at 76 closed plant sites to see if they could host a power station. Currently about two dozen shuttered coal plants are being considered to be reactivated. The PA PUC aims to narrow down the list to five or so that can be quickly brought online. They are also looking at solar, battery storage, and even nuclear power using the old power plant sites.
But while the PUC estimates squeezing another 9 GW statewide from the old plants, it’s not enough. By 2030, PJM is expecting 32 GW of new demand on its system. Of this, 30 GW of new demand will come from data centers. As result, the PUC warns that even with more power becomes available, the state could still face serious reliability problems by next year.
But critics of the study say it doesn’t provide relief for rising customer bills. Instead, they say its support for data centers is a “distraction and an unnecessary side quest.” Others point out that the study excludes future environmental impacts on air, water, and local health. Basically, reviving old coal power plants may only be a band aid while renewables could provide a longer lasting fix.
Shop and Save on Electricity
To be sure, the PA grid is in a sticky situation; there are no easy solutions. At any rate, PA electric customers will see their utility bill rates rise further this winter.
Given this uncertainty, it’s critical to shop now for the best energy supplier. And you can find the best plans for your home with us. Visit https://www.paenergyratings.com to see the electric plans that meet your needs.