Docket No. AD06-3-000
The Federal Energy Regulatory Commission today released staff’s 2025 Summer Assessment on the outlook for energy markets and electric reliability during the June to September time frame.
The assessment details that if normal operating conditions prevail, all regions of the country will have adequate generating resources to meet expected summer demand and operating reserve requirements; however, margins are getting tighter as generation resources retire and load increases largely due to hyperscale users, such as data centers.
Regions such as Northeast Power Coordinating Council (NPCC)-New England, Midcontinent Independent System Operator (MISO), the Electric Reliability Council of Texas (ERCOT), Southwest Power Pool (SPP) and PJM Interconnection may face a higher likelihood of tight generation availability due to above-normal electricity demand, periods of low wind and solar output, wildfires that disrupt available transfers and generator availability, and retirements of generation capacity.
If anticipated warmer-than-average temperatures occur, the electric grid will likely be challenged throughout the continental United States with increased uncertainty due to weather events, weather forecasting, and energy demand. In addition, load is expected to be higher this summer compared to the past four summers.
“We are losing dispatchable generation at a pace that is not sustainable and we are not adding sufficient equivalent generation capacity,” FERC Chairman Mark Christie said. “Today’s assessment brings that point home, and I’m looking forward to discussing resource adequacy issues in great depth at the technical conference we are having on June 4 and 5 here at FERC.”
In addition, wholesale electricity prices are expected to be higher this summer as compared to last summer in most regions, especially in Northeast U.S. The increase in prices is partially due to higher natural gas prices at all major trading hubs across the country because of lower natural gas storage levels due to a colder winter than previous years.