New Report: PJM’s Broken Capacity Market is Gas’s Opportunity
A new report from two respected energy economists puts a number on something MDN readers have watched play out all year: PJM’s capacity market is broken, and it’s about to cost ratepayers billions — while creating a wide-open lane for reliable Marcellus/Utica gas. The National Center for Energy Analytics (NCEA) published “Regional Transmission Organizations: Problem or Solution?” on August 27. Authors Jonathan A. Lesser (president, Continental Economics) and Brent Bennett (policy director, Life:Powered/Texas Public Policy Foundation) dig into why RTOs (Regional Transmission Organizations) like PJM — the grid operator covering all or part of 13 mid-Atlantic states, including Pennsylvania, Ohio, and West Virginia — are struggling to keep the lights on at a price anyone wants to pay.
Read More “New Report: PJM’s Broken Capacity Market is Gas’s Opportunity”
A pile of poster boards in a YMCA gymnasium is not usually where you find the most important number in a $33 billion project. But on Aug. 27, at the Pike County YMCA in Waverly, Ohio, an SB Energy executive told a Columbus Dispatch reporter something that ought to get every Utica producer’s attention: the turbines are already bought. Not ordered. Not “in negotiations.” Bought — for the first phase of what will be the largest gas-fired power plant in American history. 
Back in May we told you Dominion Energy had brass you know what announcing a monster 3,000-megawatt (3 gigawatt) gas-fired power plant in Cumberland County, Virginia, while its much smaller Chesterfield peaker project was still stuck in the mud after three years of green lawfare (see 
The government of New Brunswick, Canada, granted conditional approval last Friday for a 500-megawatt natural gas power plant that provincial officials say is needed to keep the lights on and prevent rolling blackouts within two years. The Canadian Press story that broke the news never asked the obvious question — the one a half-dozen readers asked in the comments section instead. Where does the gas come from? Answer: Appalachia. Or Qatar. Anywhere, really, except New Brunswick, which has outlawed fracking since 2014. 
Nineteen months after TECfusions bought the old Alcoa research campus in Upper Burrell (Westmoreland County), PA, and promised to build 3 gigawatts of gas-fired AI computing capacity, the company announced yesterday that the site is live and delivering GPU capacity to a paying customer. It’s a small first bite of a very large apple—but it’s real, it’s running on gas turbines today, and it sits on top of Marcellus wells the company already owns. 
When we covered DTE Energy’s second quarter results in July, we grumbled that the company was throwing $10 billion at unreliable renewables and only $2.5 billion at a single new gas plant to replace a retiring coal fleet (see 
South Carolina’s utility regulators voted unanimously yesterday to let a $2.8 billion artificial intelligence data center in Spartanburg County build and run its own 457-megawatt natural gas power plant without asking the state’s permission first. The decision is a big win for the “behind-the-meter” model — where a data center brings its own generation instead of leaning on the grid — and it’s a model that is going to burn a lot of molecules. Possibly some of ours. 
The PJM market monitor asked federal regulators to kill Hull Street Energy’s purchase of two gas-fired peaking plants unless Hull Street promised not to point them at data centers. On August 13, FERC said no — and said the monitor hadn’t supported its argument. Thirteen days later, the deal closed. Hull Street Energy (HSE), a private equity firm in the Washington, D.C. area, announced yesterday that it completed the acquisition of the Lee County Generating Station in Dixon, Illinois, and the Tait Electric Generating Station near Dayton, Ohio, from Rockland Capital. HSE calls the pair the “GridFlex Portfolio” and has folded it into Milepost Power, its thermal generation platform. 
PJM Interconnection — the grid operator that keeps the lights on for 67 million people across 13 states and DC, including most of the Marcellus/Utica region — dropped its new five-year strategy last Wednesday (Aug. 19). Most of the coverage focused on the four bullet-point priorities, which read like every corporate strategy document ever written. But if you skip to page 5, PJM says two things out loud that our industry has been shouting for a decade: pipeline constraints are choking the grid, and the grid is getting less reliable as it gets more intermittent. 
Score one for the good guys. The Ohio Power Siting Board (OPSB) voted yesterday (Aug. 20) to hand Chestnut Run Energy LLC its Certificate of Environmental Compatibility and Public Need — the golden ticket needed to build a 1,300-megawatt (MW), $2 billion natural gas-fired power plant in Washington Township, Carroll County. That’s smack in the middle of Utica Shale country. MDN first told you about this project back in April (see 
Gov. Josh Shapiro signed Executive Order 2026-05 on Tuesday, imposing what he called “the strictest guardrails in the nation” on AI data centers — and, we’d argue, on the gas-fired power plants that will run them. Two western PA projects lost fast-track permitting status the same day. But the real damage is buried in a 33-page model consent order that got almost no attention. We don’t think it’s unfair or hyperbole to say Shapiro just destroyed the AI data center industry in the Keystone State. 
Norway’s Equinor — the company we all used to call Statoil — announced Monday it is buying a majority interest in the Lackawanna Energy Center (LEC), the big Marcellus-fired power plant in Jessup, PA, just outside Scranton. Equinor is paying $940 million for 87.71% of the Class A shares in the 1,483-megawatt plant, buying them from funds managed by Global Infrastructure Partners (GIP), which is now part of BlackRock. Invenergy, which built LEC and has run it since day one, stays on as operator. MDN has followed this plant since it was nothing but a proposal and a pile of angry town council meetings (see 
It’s official. In June, we told you OpenAI was in “advanced negotiations” to lease the gargantuan 10-gigawatt (GW) data center campus rising on federal land in Piketon (Pike County), Ohio (see 
Net Power, backed by the Rice brothers (of Rice Energy and EQT fame), has spent years chasing the holy grail of natural gas power: a plant that burns gas and emits essentially zero carbon dioxide. Last year the company backed off that goal and pivoted to post-combustion carbon capture (PCC), which grabs about 90% of the CO2 using off-the-shelf technology. Close enough, the market said. Last week, Net Power pivoted again — and this one’s a doozy. The first phase of its flagship West Texas project will now be built with no carbon capture at all. Just a gas plant. Meanwhile, the company took a $193.7 million charge to write its original Allam Cycle technology and its La Porte demonstration plant down to zero.