The U.S. Department of Energy’s October 12, 2026, emergency order directing PJM Interconnection to use additional generating resources should be a wake-up call for Michigan and the entire PJM region. Effective October 13–16, the order authorizes specified power plants to operate as needed for reliability and allows backup generators at large facilities to help reduce grid demand during emergencies.

This does not mean blackouts are inevitable. However, it highlights the serious challenges facing our electricity system and the need to add capacity before emergency measures become routine.

As a Michigan-based company, Solar Mounts LLC, a designer and manufacturer of commercial and utility-scale solar mounting systems, recognizes the potential implications for electricity prices, air quality, local businesses, and families across the state.

PJM’s capacity auctions have exposed the difficulty of securing enough electricity for future demand. Prices reached $329.17 per megawatt-day for the 2026–2027 delivery year and $333.44 for 2027–2028, with the latter auction falling short of PJM’s stated reliability requirement.

Capacity costs are only one component of electricity bills, but rising prices signal growing pressure on consumers. We need more power before shortages force increasingly expensive emergency responses.

The October 2026 order permits designated generating units to exceed specified operating limits when necessary for reliability. It also authorizes PJM to direct backup generation at data centers and other large facilities, potentially including diesel generators as a last resort.

Running fossil-fuel plants more frequently can increase emissions, depending on the units involved. Operating diesel generators will worsen local noise pollution and expose operators to high diesel prices.

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