PJM market monitor opposes Maryland power plant sale to data center company

Core Viewpoint - The PJM Interconnection's market monitor has urged federal regulators to reject GenOn's application to sell a 216-MW power plant in Maryland to TeraWulf due to concerns that the data center developer may remove the resource from the PJM market [1]. Group 1: Market Concerns - Removing the four oil-fired Morgantown generating units from the PJM market contradicts principles set by the National Energy Dominance Council and PJM governors, which advocate for new data centers to contribute to new generation [2]. - The proposed transaction would shift risks and costs to PJM customers and is deemed inconsistent with the public interest by the market monitor [3]. - The Morgantown power plant is located in a constrained zone within PJM that necessitates the retention of existing generation and the construction of new generation [5]. Group 2: Regulatory and Corporate Responses - Monitoring Analytics has recommended that FERC reject the proposed deal and require GenOn to clarify that the Morgantown units will continue to supply the PJM market [5]. - TeraWulf is expected to commit to not removing the Morgantown units from the PJM market to serve data center load, although the company plans to be a net generator for Maryland [6]. - TeraWulf intends to develop its project in two phases, each comprising approximately 500 MW of gas-fired generation, 250 MW of battery storage, and 500 MW of data center load [6]. Group 3: Strategic Intentions - TeraWulf's site is engineered to operate as a net generator for the state, contributing additional capacity in constrained markets rather than merely consuming it [7]. - The planned battery storage at the Morgantown site is intended to help reduce peak load, benefiting the PJM grid [7].