Article

The US is experiencing a reliability crisis in its power grid due to escalating demand outpacing supply installations. The North American Electric Reliability Corporation has warned of a critical situation, exacerbated by aging infrastructure and increasing electricity demand, particularly from data centers.

PJM Interconnection reported an additional cost of $13.6 billion for grid upgrades to accommodate data center capacity for the July 2025 to July 2026 period, leading to higher consumer electricity bills. Utilities often prioritize reliability over affordability, resulting in rapid increases in transmission and distribution costs and raising average residential electricity rates by over 30% since 2020.

The Department of Energy (DOE) is urged to expedite the designation of national interest electric transmission corridors to improve infrastructure development. Reforms are recommended for planning strategies, cost allocation, and rate structures to ensure a balance between reliability and affordability for consumers.