Supply-Demand Imbalance - Increased load and demand are at levels not seen in the last 30-40 years, while the industry continues to operate under 50-year-old rules [4] - Utilities in the PJM marketplace, which do not own generation, are experiencing the greatest imbalance [4] - Vertically integrated utilities, representing 30-40% of the country, are not facing the same issues as they are increasing supply [5] - Customers are bearing the brunt of the supply shortage due to affordability issues [5] Addressing the Shortage - PJM recognizes its shortfalls and is working internally to address them [6] - Governors across the PJM states are collaborating on proposals to increase generation and address customer affordability issues [7][8] - Solutions will require short, mid, and long-term strategies and collective effort [8] Factors Contributing to Increased Demand - Data centers and AI are contributing to increased demand, but are not the sole cause [9] - Onshoring, manufacturing, and the electrification of everything are simultaneously creating a "perfect storm" [10] - Existing generator base is incentivized to maintain current load levels to maximize dollar value [10] Proposed Solutions - Allowing utilities to re-enter the generation business, with state control and management, could provide cost certainty and clarity [11] - Exelon CEO suggests combined cycle gas turbines, community solar, and battery storage as potential solutions [12]

Core Insights - The utilities sector is currently the third best performing sector, driven by the increasing energy demand from AI technologies [1] - There is a significant supply-demand imbalance in the energy market, particularly in the PJM marketplace, which could lead to power shortages in the coming years [4][6] - The governors of states within the PJM region are collaborating to address the energy supply issues and affordability challenges faced by consumers [7] Supply-Demand Imbalance - The energy demand has surged to levels not seen in the last 30 to 40 years, while the regulatory framework has remained unchanged for the past 50 years [4] - Vertically integrated utilities are managing the demand effectively, but non-generating utilities are struggling to meet the increased demand, leading to affordability issues for customers [5] Proposed Solutions - There is a call for utilities to re-enter the generation business to ensure better control and clarity over energy supply [11] - Alternative energy solutions such as combined cycle gas turbines, community solar, and battery storage are suggested to enhance energy supply [12] - A sense of urgency is needed to address the potential crisis in energy supply before it escalates [14]

Nigeria is in talks with China’s Export and Import Bank for a $2 billion loan to build a new super grid to reduce power shortages that have curtailed economic growth for decades https://t.co/OBAJ1oWnsz ...