RD Energy July 2025 Stay Current Newsletter: June’s Skyrocketing Power Demand Signals a New Era for the Grid
If you thought summer 2024 was hot, PJM’s early summer 2025 power demand is rewriting the playbook.
In June 2025, PJM recorded significantly higher peak electricity usage than in any single day of summer 2024—even though both years experienced extreme heat. So, what’s driving this massive jump in demand so early in the season? There is a very interesting and revealing point to understand: June 2025 PJM peak power usage of 160,500 MW was 5% higher than summer 2024’s peak usage of around 153,000 MW, but actual temperatures in June on PJM were actually approximately 4°F cooler.
While the weather was a major factor, it wasn’t the only one. A much larger force is reshaping the power landscape: surging electricity consumption from data centers, advanced manufacturing, and crypto mining operations.
Data centers tied to AI, cloud computing, and digital infrastructure have been ramping up aggressively across the PJM region.
- Manufacturers, particularly those in Ohio and surrounding states, are rebounding with high-output operations that require more sustained power.
- Crypto mining, although more niche, continues to be a high-density energy user that adds to demand spikes.
The result? A new power peak well above summer 2024 levels—and it’s only June. This isn’t just a one-off. It’s a signal that the grid is entering a period of consistently higher baseline and peak demand.
In regards to natural gas wholesale natural gas prices rose sharply in early June 2025, only to fall sharply in the second half of the month, even as PJM power demand surged to record early-summer highs near 160,000 MW. This clearly demonstrates the ongoing dynamics creating so much wholesale natural gas price volatility often defying reason.
Why Did Prices Spike Early in June?
- Heat wave natural gas consumption growth
- Middle East war fears and its effect on global oil and natural gas prices
- LNG export growth as maintenance programs ended in June
- Commodity traders buying NYMEX futures in high volume and betting on sustained high natural gas demand from both power generators and global buyers of LNG
Why Did Prices Collapse Late in June?
- Temperatures for July moderated substantially reducing forecasted power demand
- June weekly EIA natural gas storage report injections continued a 10 week run of well above normal injection volumes
- Daily natural gas production continued at a strong pace not far below winter peak levels
- Commodity traders who bought NYMEX futures earlier in June anticipating high sustained natural gas demand aggressively sold their positions as the 12 day war ended and forecasted July temperatures normalized softening demand for natural gas
At RD Energy, we work hard to help our clients adjust to this new reality of higher power demand, higher power costs as well as all the domestic and global factors effecting natural gas price volatility. Whether it’s through more strategic electric and natural gas procurement, peak load KW demand shaving strategies, or through income producing Demand Response, there are smart ways to protect your bottom line as electricity and natural gas costs rise. We strongly believe we all are at the beginning of a very price volatile period.
We see a lot of businesses, schools and municipalities out there who need to seriously reexamine their energy procurement strategy and who are throwing away a lot of critical dollars to suppliers taking advantage of your complacency. Please feel free to contact us with questions, ideas and concerns.