The U.S. Department of Energy (DOE) prioritized a potential threat of power outages during a national heatwave by issuing multiple emergency orders.
Leading up to the 4th of July holiday weekend, the National Weather Service (NWS) predicted ‘dangerous heat' in much of the country through the weekend.
The DOE invoked Section 202(c) of the Federal Power Act to avert a looming grid crisis by temporarily suspending environmental laws and air quality permits so that power plants can boost electricity supply and prevent widespread blackouts.
The companies are permitted to bypass existing air quality or other permit limitations under federal, state, or local law, such as the Clean Air Act and State Implementation Plans, according to the orders.
Order No. 202-26-34 authorizes Duke to run its generation units at maximum output while Order No. 202-26-32A mandates PJM to dispatch specified units. A companion order issued on June 30 requires PJM to turn on backup plants.
PJM is the largest U.S. electric grid operator and serves 65 million people in the Mid-Atlantic, South, and Washington, D.C. areas.
The emergency actions follow PJM’s warning of massive transmission line congestion.
Spot wholesale electricity prices this week surged to more than $600 per megawatt hour in PJM's Virginia zone, home to the world's largest collection of data centers. Earlier in the day, prices were about $40 per MWh before temperatures soared toward 100 degrees Fahrenheit.
Demand on the grid topped 160 gigawatts, approaching an all-time high.
Even before this week's heat wave, PJM had been straining to overhaul a system pushed to the brink by surging energy consumption by data centers and electric vehicles.
To meet unexpected shortages, PJM reported 18 GW of reserve power resources that can be brought online within 30 minutes.
PJM's low-voltage alert signaled that the risk of rotating outages is higher as voltage levels on transmission lines weaken. The grid operator has also warned power plants to bring generators out of maintenance so they can be ready to meet surging demand.
Gridraven CEO Georg Rute said extreme heat, low wind and surging demand are coinciding at a time when transmission lines have the least margin for safety. That is contributing to spikes in electricity prices, as the cost of moving power rises amid heavy congestion.
Coal plant generation this week has produced up to 22 percent of PJM's electricity supply, with output approaching 28 GW. That's about 75 percent higher than the average so far in 2026, according to PJM generation data.