America’s power grid comes under strain as major winter storms ravage the country

Like a huge winter storm across the United Statespower grid operators are taking extraordinary measures to keep the lights on and avoid recurring power outages.

The storm, which spans more than 2,300 miles, has triggered high price volatility in electricity markets and forced some regions to temporarily rely on oil-fired production to meet the demand, Reuters reported.

PJM Interconnection — the nation’s largest regional power grid, serving 67 million people in the East and Mid-Atlantic — saw wholesale electricity prices briefly climb above $3,000 per megawatt hour early Saturday, up from less than $200 earlier in the day, Reuters reported.

In New England, fuel oil production was increased to help the region conserve natural gas, its main fuel source, according to Reuters.

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At the center of this tension is the country’s heavy dependence on natural gas delivery, according to Didi Caldwell, founder and CEO of site selection company Global Location Strategies.

Natural gas now powers about 40% of U.S. electricity generation, up from about 12% in 1990, making uninterrupted supply essential during extreme weather, Caldwell said.

“What we’re lacking is sufficient capacity to store and deliver gas in real time,” Caldwell told FOX Business, noting that the U.S. has abundant reserves.

Unlike coal plants, which historically store months of fuel on site, most natural gas plants rely on just-in-time delivery. Any disruption to pipelines or infrastructure can quickly threaten power production, according to Caldwell.

“If something were to disrupt gas supplies to power plants, they would have little or no practical backup,” she said.

Winter the storms are getting stronger the risk. Demand for gas increases as households turn up their heating, while demand for electricity increases at the same time, fueled largely by natural gas.

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“Every region is at risk, but for different reasons,” Caldwell said. “In the Southeast, lack of storage and limited transportation capacity mean that during cold spells, natural gas competes with itself.”

One of the most vulnerable areas is Transcontinental Gas Pipe Line Co. Zone 5, which runs through Georgia, South CarolinaNorth Carolina and Virginia, according to Caldwell.

“Limited storage and pipeline capacity means that during major winter events, atypical for this region like the one predicted for this weekend, gas prices and transportation capacity – essentially the volume booked on the pipeline – skyrocket,” she said.

The vulnerabilities of this system were exposed during Texas’ deadly winter storm Uri in 2021, when frozen gas infrastructure triggered widespread power outages. Although upgrades have followed, the current storm represents one of the first major tests of those improvements, Caldwell said.

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A similar near-failure occurred in 2022, when gas systems in the Southeast and Mid-Atlantic were pushed to their limits during an arctic cold spell. The network only held together thanks to emergency measures and thin margins, according to Caldwell.

Caldwell said long-term solutions will require grid modernization, targeted gas delivery improvements and better coordination between gas and electric systems.

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“Adding more natural gas production will not solve the problem and could exacerbate the risks,” she said.

PJM Interconnection did not immediately respond to FOX Business’ request for comment.