The Looming Energy Crisis in the US

The complex issues surrounding electricity supply and demand in the United States. It highlights how the government plays a limited role in managing the electrical grid, which impacts national security and the economy.

1. Limited Government Role: The U. S. federal government has a minimal role in managing electricity supply, leaving it largely to public utilities and independent power producers.

2. Electric Grid Complexity: The U. S. electrical grid is interconnected, meaning issues in one area can affect others. Understanding this system requires knowledge of industry terms and operations.

3. Electricity Supply and Demand: Electricity is generated by various sources, including nuclear plants, fossil fuel plants, hydroelectric plants, and renewable sources like wind and solar. Public utilities provide over 80% of electricity to consumers.

4. Regional Transmission Organizations (RTOs): RTOs and Independent System Operators (ISOs) manage electricity distribution across regions. They are non-profit entities keeping track of supply and demand and setting energy prices. Electricity prices fluctuate based on multiple factors, including generation mix and transmission constraints.

5. Storage Limitations: Unlike other commodities, electricity cannot be stored in large quantities, requiring production and consumption to happen simultaneously.

6. Major RTOs: There are seven vital RTOs/ISOs managing most of the U. S. electricity distribution: PJM, MISO, SPP, CAISO, NYISO, ISO-NE, and ERCOT, overseeing the Eastern, Western, and Texas interconnections.

7. State Regulations: State public service commissions (PSCs) regulate local utilities, making decisions about electricity rates and infrastructure without considering national demand or supply.

8. Electricity Imports: Many states, like California and New England, import significant portions of their electricity due to limitations in local capacity, closures of fossil fuel plants, and regulatory measures to meet environmental standards.

9. Growing Demand: U. S. electricity consumption is forecasted to rise annually, partly due to increasing electricity demands from A. I. data centers, which could represent a notable proportion of total consumption by 2030.

10. Regulatory Constraints: The Federal Power Act reserves decisions about power generation to the states, limiting the federal government from mandating the construction of new plants. PSCs cannot approve new plants if they harm in-state electricity supply or raise rates excessively.

Currently, many states rely on importing electricity instead of building their generating capacity, influenced by climate regulations, environmental standards, and public opposition to new plants. There isn't a national strategy ensuring the U. S. electrical grid can meet future demands, raising concerns about potential blackouts. One proposed solution is to require state utilities to construct enough in-state generation capacity to meet their projected electricity needs, using imports only for emergencies.

Author Guy K. Mitchell, Jr. argues that addressing these issues is critical to maintaining a reliable power supply in the U. S. 

https://www.americanthinker.com/articles/2025/10/the_looming_energy_crisis_in_the_us.html