U.S. Grid Reliability Watchdog Issues Rare Warning Amid Rising Power Demand and Blackout Concerns

The American South is grappling with severe thunderstorms stretching from New Orleans to Virginia Beach, while Mount Mayon in the Philippines’ Bicol peninsula has forced thousands to evacuate. In Denver, temperatures are set to drop sharply from 75°F yesterday to 39°F today, with a chance of snow.

U.S. Grid Reliability Watchdog Issues Rare Warning

The North American Electric Reliability Corporation (NERC), the quasi-governmental agency overseeing power grids across the U.S. and Canada, has issued a rare Level 3 warning—only the third such alert in its 58-year history. Announced on Monday, the warning follows reports of data centers going offline in Virginia and Texas, raising concerns about potential blackouts.

In a draft of the alert, NERC warned that “computational loads, such as data centers, could increase exponentially in the next four years”, adding that “significant risks” to the power network “need to be addressed through immediate industry action.”

“This is a big deal.”

California Investigates Offshore Wind Developer’s $120 Million Deal

The California Energy Commission has issued an administrative investigative subpoena to Golden State Wind, demanding documents related to the company’s recent deal with the U.S. Department of the Interior. Under the agreement, the developer scrapped its offshore wind lease in the Morro Bay Wind Energy area off central California in exchange for a $120 million payout—part of the Trump administration’s efforts to dismantle the offshore wind industry.

The facility was slated to be California’s first offshore wind farm, utilizing floating turbines to adapt to the Pacific Coast’s steep continental shelf. Now, state regulators are scrutinizing the deal, with David Hochschild, chairman of the California Energy Commission, calling it a “reckless expenditure of taxpayer dollars on backroom deals” that undermines sustainable energy progress.

“Californians deserve immediate answers about the nature of this payout. Taxpayer dollars should be used to build a sustainable energy future, not to pay to make projects disappear.”

In a related development, California’s grid operator has launched a new regional electricity market, marking a “major milestone” in expanding energy trading across the American West. The California Independent System Operator (CAISO) activated its Extended Day-Ahead Market on Friday, enabling California’s investor-owned utilities and PacifiCorp—which serves two million customers across six states—to trade electricity regionally for the first time.

“The West is rich with a diverse mix of renewable resources.”