US Grid Strain, Possible Allete Sale

Allen discusses the strain on America's largest power grid due to
data center demand, Taiwan's $3 billion wind farm project, the
potential sale of Allete and new data center regulations in Ohio.
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show? Email us! America's largest power grid is under serious
strain. Data centers and AI chatbots are using electricity faster
than new power plants can be built. PJM Interconnection covers
thirteen states from Illinois to Tennessee and Virginia to New
Jersey. The company serves sixty seven million customers. This
summer, electricity bills could jump more than twenty percent in
some areas. The region has the most data centers in the world.
Pennsylvania Governor Josh Shapiro is threatening to pull his state
out of the grid entirely. Recently, PJM's CEO has announced he's
leaving and PJM Board members have been voted out. PJM spokesman
Jeffrey Shields says the problem is simple economics. "Prices will
remain high as long as demand growth is outstripping supply. Right
now, we need every megawatt we can get." The grid lost more than
five point six gigawatts in the last decade. Old power plants shut
down faster than new ones come online. Meanwhile, data center
demand keeps growing. By twenty thirty, PJM expects thirty two
gigawatts of increased demand. Almost all of that will come from
data centers. Ørsted has secured three billion dollars in financing
for a major wind farm project in Taiwan. The Greater Changhua Two
project will supply clean energy to over one million households
once it's fully operational. The wind farm sits thirty to thirty
seven miles off Taiwan's coast. Taiwan wants twenty percent of its
electricity to come from renewable sources by twenty twenty five.
This project is a critical step toward that goal. Ørsted plans to
sell part of its ownership stake after the project is completed.
This strategy lets the company recycle money into new projects
while keeping operational control. Allete is one step closer to
being sold. The Minnesota Department of Commerce has withdrawn its
opposition to the six point two billion dollar deal. Canada Pension
Plan Investment Board and Global Infrastructure Partners want to
buy the company. Allete runs Minnesota Power and Superior Water,
Light and Power of Wisconsin. The sale still needs approval from
the Minnesota Public Utilities Commission. That's the last hurdle
before the deal can close. The new owners have agreed to several
customer protections. They'll freeze rates for one year and reduce
the company's allowed profit margin. They've also promised fifty
million dollars in additional clean energy investments. AEP Ohio
has won approval for new rules that protect customers from data
center costs. The Public Utilities Commission of Ohio approved the
plan on July ninth. Large data centers will now have to pay for at
least eighty five percent of the electricity they sign up for, even
if they use less. AEP Ohio President Marc Reitter says the rules
align data center demand with infrastructure costs. "This
infrastructure will support Ohio's growing tech sector and help
secure America's data storage facilities here in the U.S." The
requirements will last twelve years, including a four year ramp up
period. Data center owners must also prove they're financially able
to meet their obligations. RWE has extended CEO Markus Krebber's
contract until twenty thirty one. The early extension adds another
five years to his current agreement. Krebber has led the German
energy company since twenty twenty one. He joined the company in
twenty twelve and became an Executive Board member in twenty
sixteen. The Supervisory Board praised his leadership during the
energy crisis and his work positioning the company for future
growth. That's this week's top news stories, join us tomorrow for
the Uptime Wind Energy podcast.