PJM: Energy use hits highs during recent freeze

The regional power grid operator says the deep freeze that kept the area encased in ice-covered snow for weeks was the worst sustained cold period since the 1990s, but lower energy use and some help from the federal government kept power generation stable.

PJM Interconnection released its review of January cold-weather operations Feb. 6, describing temperatures during the Jan. 26-30 arctic wave as warmer than expected. School, government and office closings also helped drive down demand. Still, the report states, energy use was high enough that Jan. 29 and Jan. 30 are now listed among PJM’s historical top 10 winter peaks.

In order to prepare for days of potentially record-setting electricity demand, the report states, PJM secured gas supplies through about $798 million in out-of-market uplift costs from Jan. 24 to Feb. 1, based on preliminary figures.

PJM officials would not say how those costs would affect customer bills.

“PJM doesn’t control retail rates. Each utility and state formulates retail rates differently,” said Jason McGovern, spokesman for PJM Interconnection.

Natural gas prices to fuel the eastern grid spiked during the deep freeze, with prices averaging about $140 per million British thermal units – the standard unit used to measure the energy content of gas – compared to about $30 per million in January 2025. In addition, the market price for energy surged throughout the cold snap. At 5 p.m., Jan. 24, the hourly system energy price that PJM puts out to purchase energy for the grid hit over $700 per MW hour. In comparison, at 11 a.m., Feb. 12, the cost was about $40.

Help came from the Department of Energy, which granted PJM’s request to allow generators to run in excess of environmental permit levels during emergencies.

“PJM needed to be able to access all available generation to be prepared for the potential and actual impact, including high demand, extremely low temperatures and higher-than-usual generator outages,” the report states.

The Department of Energy also issued an order allowing PJM to direct data centers and other large-load customers onto backup generation if needed in an emergency to avoid electrical outages to other customers.

“While PJM did not need to implement the order – which expired Feb. 2 – PJM worked closely with transmission owners to establish a procedure describing how that process would work,” the report states. “PJM will continue to work with transmission owners, large-load customers and the DOE to refine this procedure in case it is needed and approved for future events.”