Strengthening the Reliability and Security of the United States Electric Grid
Signed: April 8, 2025
Published: April 14, 2025
Document Number: 2025-06381
đSummary
This executive order directs the Department of Energy to take faster, more standardized action to prevent major power shortages or grid failures, especially during periods when grid operators warn that supply interruptions may be needed to avoid a collapse. It mainly affects the Department of Energy, regional grid operators and regulators, and power plant owners whose facilities may be asked or required to run at maximum output or stay online for reliability reasons. Within 30 days, the Secretary of Energy must create a uniform way to measure current and future âreserve marginsâ (how much extra power capacity exists beyond expected demand) across all FERC-regulated regions, and publish the method and resulting analyses online within 90 days. Using those results, the Department must regularly reassess risk, identify power plants critical to reliability, and use available legal toolsâincluding emergency authority under the Federal Power Actâto keep critical generators available in at-risk regions, including potentially blocking certain large plants (over 50 MW) from retiring or switching fuels if that would reduce dependable capacity.
đźBusiness Impact
This order most directly affects **electric generators (especially >50 MW plants), utilities/ISOs/RTOs, fuel suppliers (coal, gas, nuclear), and large-load customers** like **AI data centers and manufacturers** in regions with tight reserve margins. DOE will publish a **uniform reserve-margin methodology** and identify âat-riskâ regions and **âcriticalâ generation**, creating potential **compliance pressure to delay retirements, prevent certain fuel conversions, and run at maximum capacity under expedited DOE emergency (FPA 202(c)) orders**âwhich can change operating schedules, maintenance windows, fuel contracting, and emissions/permit strategies. Opportunities include **capacity/reliability payments, extended-run contracts, and fast-track participation in emergency reliability programs** for plants that can demonstrate high performance during stressed grid conditions. Immediate actions: **(1) monitor DOE postings and your regionâs reserve-margin status, (2) model how âcritical resourceâ designation could affect retirement/conversion plans and financing, (3) secure/hedge fuel and O&M staffing for extended operations, and (4) for large-load businesses, reassess site selection, interconnection timelines, and backup/DR plans in at-risk regions.**
Full Text
Executive Order 14262 of April 8, 2025
Strengthening the Reliability and Security of the United States Electric Grid
By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:
Section 1 . Purpose. The United States is experiencing an unprecedented surge in electricity demand driven by rapid technological advancements, including the expansion of artificial intelligence data centers and an increase in domestic manufacturing. This increase in demand, coupled with existing capacity challenges, places a significant strain on our Nation's electric grid. Lack of reliability in the electric grid puts the national and economic security of the American people at risk. The United States' ability to remain at the forefront of technological innovation depends on a reliable supply of energy from all available electric generation sources and the integrity of our Nation's electric grid.
Sec. 2 . Policy. It is the policy of the United States to ensure the reliability, resilience, and security of the electric power grid. It is further the policy of the United States that in order to ensure adequate and reliable electric generation in America, to meet growing electricity demand, and to address the national emergency declared pursuant to Executive Order 14156 of January 20, 2025 (Declaring a National Energy Emergency), our electric grid must utilize all available power generation resources, particularly those secure, redundant fuel supplies that are capable of extended operations.
Sec. 3 . Addressing Energy Reliability and Security with Emergency Authority. (a) To safeguard the reliability and security of the United States' electric grid during periods when the relevant grid operator forecasts a temporary interruption of electricity supply is necessary to prevent a complete grid failure, the Secretary of Energy, in consultation with such executive department and agency heads as the Secretary of Energy deems appropriate, shall, to the maximum extent permitted by law, streamline, systemize, and expedite the Department of Energy's processes for issuing orders under section 202(c) of the Federal Power Act during the periods of grid operations described above, including the review and approval of applications by electric generation resources seeking to operate at maximum capacity.
(b) Within 30 days of the date of this order, the Secretary of Energy shall develop a uniform methodology for analyzing current and anticipated reserve margins for all regions of the bulk power system regulated by the Federal Energy Regulatory Commission and shall utilize this methodology to identify current and anticipated regions with reserve margins below acceptable thresholds as identified by the Secretary of Energy. This methodology shall:
(i) analyze sufficiently varied grid conditions and operating scenarios based on historic events to adequately inform the methodology;
(ii) accredit generation resources in such conditions and scenarios based on historical performance of each specific generation resource type in the real time conditions and operating scenarios of each grid scenario; and
(iii) be published, along with any analysis it produces, on the Department of Energy's website within 90 days of the date of this order. ( printed page 15522)
(c) The Secretary of Energy shall establish a process by which the methodology described in subsection (b) of this section, and any analysis and results it produces, are assessed on a regular basis, and a protocol to identify which generation resources within a region are critical to system reliability. This protocol shall additionally:
(i) include all mechanisms available under applicable law, including section 202(c) of the Federal Power Act, to ensure any generation resource identified as critical within an at-risk region is appropriately retained as an available generation resource within the at-risk region; and
(ii) prevent, as the Secretary of Energy deems appropriate and consistent with applicable law, including section 202 of the Federal Power Act, an identified generation resource in excess of 50 megawatts of nameplate capacity from leaving the bulk-power system or converting the source of fuel of such generation resource if such conversion would result in a net reduction in accredited generating capacity, as determined by the reserve margin methodology developed under subsection (b) of this section.
Sec. 4 . General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
