The Federal Energy Regulatory Commission (FERC) has issued a cautionary summer outlook, warning that extreme heat, growing electricity demand from AI data centers, and retiring power plants could strain the U.S. power grid.
FERC said the grid should just manage if all goes well—but it rarely does. The agency flagged vulnerable regions including Texas, the Midwest, the Mid-Atlantic, New England, and the Southwest. If a heatwave, low wind, or weak solar output hit these areas, power outages could occur.
The report warns that such conditions might force “operational mitigations,” a term that means possible rolling blackouts and higher electricity prices.
The forecast is grim: Western and Southeastern states have a 40–60% chance of above-normal temperatures this summer. Heatwaves increase air conditioning use, wildfires damage transmission lines, and drought reduces hydropower output. Meanwhile, the rise of AI data centers drives up power demand significantly.
At the same time, older coal and gas plants are retiring faster than new clean energy facilities can replace them. Higher natural gas prices add further pressure. This combination could make this summer one where power bills rise as fast as the mercury.
FERC believes the grid will hold—but it will be a tough test, with potential risks to reliability.
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