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Emergency Order Ensures Reliable Energy for 65 Million Americans Amid Winter Months

Strategic Insights

— 2 min read

The U.S. Department of Energy issued an emergency order under Section 202(c) of the Federal Power Act to ensure a stable and secure energy supply for 65 million Americans in 13 states and the District of Columbia. The order allows PJM Interconnection to operate the Wagner Generating Station's Unit 4 in exceedance of its operating limit to meet anticipated electricity demand during the winter months. This measure follows the North American Electric Reliability Corporation's Winter Reliability Assessment, which highlighted "risks of electricity supply shortfalls during periods of more extreme conditions" in PJM's service area.

Key Takeaways:

  • The emergency order was issued by U.S. Secretary of Energy Chris Wright to mitigate the risk of energy shortfalls and ensure reliable power for 65 million Americans in 13 states and the District of Columbia.
  • The order permits PJM Interconnection to operate the Wagner Generating Station's Unit 4 in exceedance of its operating limit to meet anticipated electricity demand during the winter months.
  • PJM previously requested to operate Unit 4 in July, citing a "growing resource adequacy concern," and the department granted the request to ensure reliable energy during the summer months.
  • The annual assessment conducted by the North American Electric Reliability Corporation highlights the need for contingency measures to address "risks of electricity supply shortfalls during periods of more extreme conditions" in PJM's service area.
  • According to PJM's 2023 Energy Transition Report, the organization has been voicing concerns about resource adequacy and reliability risks due to timing mismatches between resource retirements, load growth, and new generation entry.
  • In a December 2024 statement filed with the Federal Energy Regulatory Commission, PJM stated that its preliminary analysis shows "substantial increases" in load additions and a growing resource adequacy concern.
  • During a March 2025 hearing before the House Committee on Energy and Commerce, PJM's CEO testified that there is a "growing resource adequacy concern impacting a significant part of our country."
  • The emergency order takes effect on October 26, 2025, and will continue through December 31, 2025.

Statistics:

  • 65 million Americans in 13 states and the District of Columbia will be covered by the emergency order.
  • PJM Interconnection will be allowed to operate the Wagner Generating Station's Unit 4 in exceedance of its operating limit.
  • The emergency order will continue through December 31, 2025.
  • According to PJM's 2023 Energy Transition Report, the organization highlighted increasing resource adequacy concerns and reliability risks.
  • PJM reported 11 instances in a single month where Unit 4 ran to support record high loads last winter.

Sources:

  • U.S. Department of Energy
  • North American Electric Reliability Corporation's Winter Reliability Assessment
  • PJM Interconnection, L.L.C., FERC Docket No. ER25-712, Tariff Revisions for Reliability Resource Initiative at 10 (Dec. 13, 2024)
  • Keeping the Lights On: Examining the State of Regional Reliability, Before the H. Comm. on Energy and Com., S. Comm. on Energy, 119th Cong. (Mar. 25, 2025) (testimony of Mr. Manu Asthana, President and CEO of PJM Interconnection) (Asthana Test.) at 4-5.

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