DOE keeps PJM fossil plants online with emergency orders
Rule ChangesSection 202(c) of the Federal Power Act, once a wartime authority, has become a routine grid-management tool
May 22nd, 2026: Wright orders Wagner 4 to run through August 19New here? Follow stories to track developments over time. Create a free account to get updates when stories you care about change.
Overview
Updated May 22Between 1977 and 2000, the Energy Secretary used Section 202(c) of the Federal Power Act exactly zero times; since May 2025, it has been invoked more than 40 times. On May 22, Secretary Chris Wright added another, directing Talen Energy to run a 54-year-old oil-fired unit outside Baltimore beyond its environmental run cap from now through August 19.
The order overrides a 2020 consent decree that limited Wagner Unit 4 to 438 hours of operation a year. PJM Interconnection, the grid operator for 65 million people across 13 states, says it needs the 397-megawatt unit because summer peak demand is forecast to brush against available supply. Data centers now account for 40% of PJM's capacity costs.
Why it matters
An emergency power written for wartime is now the default tool keeping retiring fossil plants online while data center demand outpaces new generation.
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People Involved
Organizations Involved
The federal department that holds Section 202(c) authority to compel temporary operation of power plants during an electricity emergency.
The grid operator that runs the wholesale electricity market across 13 states and the District of Columbia.
The Texas-based power generator that owns the Wagner and Brandon Shores plants in Maryland.
The environmental group that, with the Maryland Department of the Environment, secured the 2020 consent decree capping Wagner 4 operation.
Timeline
August 1935 May 2026
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Wright orders Wagner 4 to run through August 19
Latest Emergency OrderOrder No. 202-26-23 is the fifth Section 202(c) action in PJM under the current administration.
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PJM capacity auction sets record price
MarketAuction clears at $333.44 per MW-day and procures about 6,625 MW less than the reserve margin target.
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First Wagner Unit 4 emergency order
Emergency OrderDOE first overrides the 438-hour cap for Wagner 4, citing a Mid-Atlantic heat wave.
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Second order: Eddystone Units 3 and 4, Pennsylvania
Emergency OrderDOE orders Constellation to keep the 760 MW oil-fired units online.
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First Trump-era 202(c) order: J.H. Campbell, Michigan
Emergency OrderDOE directs Consumers Energy to keep the 1,560 MW coal plant running past its planned retirement.
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Talen and PJM reach deal to keep plants open through 2029
SettlementReliability-must-run agreement covers Wagner and Brandon Shores at fixed cost-of-service rates while transmission upgrades catch up.
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Talen notifies PJM of plans to retire Wagner and Brandon Shores
CorporateThe independent power producer cites economics and environmental permitting in setting a June 2025 retirement date.
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Wagner Unit 4 consent decree signed
RegulatorySierra Club and Maryland Department of the Environment cap Wagner 4 at 438 operating hours a year over air pollution.
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First use of Section 202(c)
Historical PrecedentThe Federal Power Commission invokes the new emergency authority months before the U.S. enters World War II.
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Federal Power Act enacted with Section 202(c)
Legal FoundationCongress gives federal regulators the power to compel utilities to share power during war or emergency.
Historical Context
3 moments from history that rhyme with this story — and how they unfolded.
World War II grid orders (1941-1945)
The Federal Power Commission used Section 202(c) for the first time months before Pearl Harbor, then 21 more times during the war to compel utilities to share generation for aluminum smelters, shipyards, and weapons plants. The orders moved electricity across utility territories that, at the time, rarely cooperated.
The orders kept war production on schedule and built the early habits of cross-utility coordination that became today's regional grids.
Section 202(c) sat largely unused after the war. It was invoked seven times between 1945 and 1977 and zero times from 1977 to 2000.
The current orders use the same statute Congress wrote for industrial mobilization. The change is in interpretation, not law: forecast summer demand now counts as an emergency.
California energy crisis (2000-2001)
Wholesale prices in California spiked, Pacific Gas and Electric went bankrupt, and rolling blackouts hit the state. Energy Secretaries Bill Richardson and Spencer Abraham used Section 202(c) to force generators and marketers to keep selling power to California utilities that no longer had the credit to buy it.
The orders kept the lights on through the worst weeks but were criticized for shielding sellers, including Enron, from credit risk.
Federal investigators later found widespread market manipulation. FERC overhauled western electricity market rules, and Enron collapsed in 2001.
California showed that 202(c) could be used for an extended financial-and-supply crisis, not just a wartime shortage. It is the closest precedent for the current pattern of repeated orders.
Texas Winter Storm Uri 202(c) order (February 2021)
As Storm Uri knocked out roughly half of Texas's generating capacity and millions lost power, Energy Secretary Jennifer Granholm issued a 202(c) order letting ERCOT generators exceed federal air-quality limits to keep running. More than 240 people died from the cold and related causes.
The order let some plants run that otherwise would have curtailed output, though much of the lost capacity was due to frozen equipment the order could not fix.
Texas overhauled weatherization rules and ERCOT market design. The order itself drew legal scrutiny over whether it improperly waived environmental law.
Uri established the modern template Wright is now using: a 202(c) order that explicitly overrides environmental limits, justified by an imminent reliability threat.
