Regulator determines Google a wholesale power seller in PJM area

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(The Center Square) - The Federal Energy Regulatory Commission on Thursday officially designated Google Energy as a Category 2 seller of wholesale electricity in the PJM power market, marking the tech giant’s transition from energy buyer to potential seller as the company’s total power generation capacity exceeded 500 megawatts.

Google, to meet the huge energy demands of its cloud and artificial intelligence systems, has moved from purchasing clean energy credits to contracting for utility-scale power projects that connect directly to the regional grid.

The tech giant is investing about $25 billion in data centers and power projects across PJM grid territory in Pennsylvania, Virginia, and Ohio and other northeastern states, raising concerns among consumer advocates over grid reliability and the potential long-term impacts on electricity rates.

As a Category 2 seller, Google Energy will be required to submit periodic reports detailing its activities to ensure the company does not engage in anticompetitive behavior or price manipulation in wholesale electricity markets. Every three years, the company must pass extensive federal reviews to prove its power generation activities are not stifling local competition or blocking smaller competitors from grid access.

According to the federal order, the filing underwent a public notice period but faced no formal protests or adverse comments from competing local utilities or consumer groups prior to its approval.

Earlier this week, Google signed a 20-year, $4.3 billion agreement with Constellation Energy, which will supply the tech giant with 890 megawatts of nuclear power across three PJM-interconnected states – Illinois, Pennsylvania, and New Jersey. Google is also financing a separate $3 billion deal to modernize and upgrade two aging hydropower plants in Pennsylvania. The company also contracted for 348 megawatts of new generation capacity at the Limerick nuclear plant near Philadelphia.

Competing tech giants Amazon and Microsoft are also pursuing similar corporate strategies to secure nuclear power supply agreements and behind-the-meter electricity generation in the same PJM market territories to guarantee energy for AI and data centers.

The energy regulator designated Amazon as a Category 2 electricity wholesaler in 2025 while Microsoft recently began the review process.