The Department of Energy issued an emergency order authorizing PJM Interconnection to use certain backup generation resources during grid emergencies after PJM warned of potential electricity shortages tied to extreme winter demand and constrained generation availability.
The order, issued under Section 202(c) of the Federal Power Act, allows PJM to call on backup generation resources and direct transmission owners and electric distribution companies to implement emergency procedures as needed.
According to the order, DOE determined that an emergency existed in the PJM region due to “a sudden increase in demand, a shortage of electric energy, a shortage of facilities for the generation of electric energy, and other causes.”
The action followed a PJM request tied to severe winter reliability conditions during Winter Storm Fern, when prolonged cold weather increased electricity demand across the region while generation availability and fuel supply concerns tightened operating conditions.
The order primarily affects large facilities with onsite backup generation capacity, including data centers, industrial campuses, and other commercial operators capable of temporarily shifting load off the bulk power system by running onsite generators.
The move highlights the growing role of behind-the-meter generation in grid reliability planning as utilities and regional operators contend with rising electricity demand, tighter reserve margins, and increasing operational pressure during extreme weather events.
For utilities and large energy users, the order signals that backup generation resources are increasingly being viewed not only as facility-level redundancy assets, but also as emergency reliability tools that can support regional grid operations during periods of system stress.
