Core Viewpoint - The rapid development of artificial intelligence (AI) and data centers is pushing the U.S. power grid into uncharted territory, with warnings from utility executives about the urgent need for repairs to avoid power shortages [2][4]. Group 1: Current State of the Power Grid - The CEO of Exelon, Calvin Butler, likened the current state of the U.S. energy grid to a car on the verge of breaking down, emphasizing that the warning lights are on and must not be ignored [2]. - Butler highlighted that the U.S. is experiencing unprecedented load growth, driven by AI's demand for computing power, manufacturing reshoring, and overall electrification of the economy [3][4]. Group 2: Demand and Supply Discrepancy - There is a disconnect between the growth in demand for electricity and the incentives for building new power generation facilities, as independent power producers are currently maximizing existing assets rather than expanding capacity [4]. - This situation is leading to increased risks of shortages and inevitable price hikes, as producers focus on extracting maximum value from current infrastructure [4]. Group 3: Future Electricity Prices - Butler stated that electricity prices are expected to rise, influenced by market dynamics within the PJM interconnection, which serves 13 states and Washington D.C. [6]. - The expiration or adjustment of previously implemented price caps could lead to a resurgence of suppressed costs, potentially costing consumers billions [6]. Group 4: Technology and Cybersecurity - Despite the pressures from the AI revolution, Butler expressed that utility companies should not be at the forefront of technology application, as failures could have severe consequences [6]. - Exelon is cautious about adopting new technologies, particularly regarding cybersecurity, rating their confidence in third-party supply chain security at only 6 to 7 out of 10 [6]. Group 5: Investment in Infrastructure - The industry plans to invest $1.1 trillion over the next five years in large infrastructure projects to address impending capacity issues, including a new 220-mile transmission line across Pennsylvania and West Virginia [7]. - Butler stressed that merely relying on physical infrastructure without addressing underlying policy issues will not resolve the problems facing the power grid [7].