Sec. Burgum on PJM auction: They will hold the auction and their options are limited

Summary

Interior Secretary Doug Burgum discusses the PJM emergency electricity auction and grid reliability on Power Lunch. He says PJM will hold the auction and its options are limited, warns that states could leave and cause PJM to collapse, and blames prior baseload retirements and intermittent renewables for higher prices and reduced reliability. He argues rising demand from AI factories and re-industrialization requires more reliable baseload power, contrasting North Dakota's low prices with New England.

• 13 governors sent PJM a statement of principles on affordability and reliability.
• Burgum expects PJM to proceed with its capacity auction despite political pressure.
• He warns states could exit PJM and trigger a collapse.
• He criticizes the retirement of 17 GW of baseload power.
• He says wind and solar are intermittent and unreliable.
• He cites rising power demand from AI factories and manufacturing.
• He contrasts North Dakota's low power prices with New England's high prices.
• He says renewable-heavy regions face higher prices and shortages.