PJM Threatens Gas-Fired Power Plants with $2B in Fines re Cold Snap

PJM is the largest electric grid operator in the U.S. It serves 65 million people in 13 states plus the District of Columbia (including PA, OH, and WV). PJM is coming under criticism for an almost-blackout during the recent Christmas cold snap. If not for certain gas-fired peaker plants, like that in the Little Town of Bethlehem, the lights would have gone out during a brutal cold snap (see Bethlehem Marcellus-Fired Power Plant Kept PA Lights on During Xmas). Some 23% of the electricity supplied to PJM was not available during the cold snap due to equipment failures and lack of supply (including natural gas frozen off at well pads). So PJM is "investigating" and threatening to assess up to $2 billion in fines on power producers who failed to supply electricity according to their contracts.

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