U.S. Energy Department Issues Emergency Orders to Address Potential Supply Shortfalls Amid Summer Demand

The U.S. Energy Department has been issuing emergency orders to address potential grid shortfall issues amid surging power demand in the summer season. The latest order, issued on June 24, authorizes Duke Energy Carolina to temporarily utilize certain electric generating units within its service territory in North Carolina and South Carolina to operate at their maximum output levels. The order, which was in effect from June 24-25, aimed to mitigate the risk of blackouts brought on by high temperatures across the Southeast region.

Last month, the department issued emergency orders delaying the planned May 31 retirement of generating units in the PJM and Midcontinent Independent System Operator regions by about three months due to mounting reliability concerns. The orders extend operations of two 380-megawatt (MW) units at Pennsylvania’s Eddystone plant and the 1,560 MW Campbell plant in Michigan, amid warnings of rising demand, thermal retirements, and shrinking reserve margins.

The department also announced two emergency actions in May to provide immediate assistance to strengthen Puerto Rico’s failing power system, a month after the island’s most recent island-wide blackout. The first order directs the Puerto Rico Electric Power Authority (PREPA) to dispatch generation units necessary to expand baseload generation and maintain grid reliability, in order to close the gap in generation shortfall. The second order instructs PREPA to carry out vegetation management, including the removal of overgrown brush, trees, and vines that pose a risk of shortages and fire. In addition to issuing the emergency orders, the Grid Deployment Office will review the $365 million in funding from the Puerto Rico Energy Resilience Fund to ensure that the department’s assistance is used to support practical fixes to the grid and benefits all residents of Puerto Rico.

The orders have been issued under the Federal Power Act Section 202(c) to address critical grid security issues and improve grid resiliency. The move underscores the Office of Cybersecurity, Energy Security and Emergency Response’s commitment to safeguarding energy security at critical times and is in accordance with U.S. President Trump’s Executive Order: Declaring a National Energy Emergency and will make certain the availability of generation required to fulfil high electricity demand and abate the risk of blackouts.

Reliability concerns have been intensifying for the summer 2025 period. In its 2025 Summer Reliability Assessment, North American Electric Reliability Corporation forecasts high temperature and record load growth, with aggregate peak demand expected to rise by 10 gigawatts (GW) across all 23 assessment areas, more than double the rise witnessed from 2023 to 2024. While resources are projected to be sufficient under normal conditions, extreme heat, low renewable output, and constrained transfer capacity could lead to supply shortfalls in some areas.