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US grid watchdog objects Maryland power plant sales, citing data center demand concerns

According to a filing made this week, the watchdog of the U.S.'s largest electrical grid urged federal regulators not to approve the sale of a Maryland-based power plant. The group cited concerns that the energy generated by the plant might be diverted to 'data centers, at a time when electricity is in short supply on the grid.

The White House, Governors, PJM, and others have proposed that data centers supply or build new power in order to 'cover their electricity consumption.

Monitoring Analytics, LLC, PJM's market monitor, has objected to the sale of Morgantown Generating Station by TeraWulf Inc, a bitcoin miner, data?center developer, and other companies. This was according to a Federal Energy Regulatory Commission filing on Wednesday.

TeraWulf announced last month that it had acquired Morgantown. The Maryland-based firm said that the power plant's operational generation capacity is about 200 megawatts and could be increased up to approximately 1,000 megawatts or enough power to power around 750,000 homes.

The company did not specify a customer or explain how this power plant would work with the broader PJM marketplace.

Monitoring Analytics stated that more information should be provided about the 'plans for Morgantown and the power units before the sale can be approved. The monitor also said that TeraWulf must commit to keeping Morgantown's electricity supply in the PJM -market, and not diverting it to?data centres.

Monitoring Analytics stated in a filing to FERC that it was unclear whether the expansion proposal relied on reactivating units or constructing 'entirely new generations, or modifying?existing?interconnection right. It is impossible to assess whether this project will actually contribute to grid supply without the information.

(source: Reuters)