The Department of Energy (DOE) has issued its fifth emergency order this year, directing PJM Interconnection to override environmental limits and dispatch an oil-fired power unit in Maryland to avert potential blackouts in the Baltimore region. The order, issued under Section 202(c) of the Federal Power Act, authorizes PJM to operate the 397-MW Wagner 4 unit at Talen Energy’s Herbert A. Wagner Generating Station beyond its environmental run cap during reliability emergencies. The order takes immediate effect and will remain in force for 90 days, covering a critical period when extreme heat and high demand could test grid reliability in the Mid-Atlantic.
The DOE’s emergency order comes as PJM Interconnection faces potential reliability threats due to the planned retirement of several generating units, including Wagner 4. Talen Energy had initially planned to retire Wagner 4, along with other units at the plant, by June 2025, citing unfavorable economics and tightening emissions rules. However, PJM’s reliability review concluded that the deactivation of Wagner 4 could create serious voltage and contingency violations in the Baltimore Gas and Electric (BGE) transmission zone, potentially leading to blackouts during high demand or constrained grid conditions.
PJM initiated a Reliability Must Run (RMR) process and reached a settlement with Talen, Maryland regulators, consumer advocates, and environmental groups. The agreement allows Wagner 4 to remain operational through May 2029 under fixed cost-of-service payments. However, the unit has a limited number of operating hours before exceeding its Clean Air Act-based limit, prompting PJM to request the DOE’s intervention.
PJM’s request highlighted the unit’s critical role in maintaining system security, noting that Wagner 4 has been heavily relied upon in 2025 to support high loads and prevent potential blackouts. The DOE granted PJM’s request, citing its responsibility to ensure maximum reliability on its system and PJM’s ability to identify and dispatch generation to meet load requirements.
This emergency order is the fifth issued by the Trump administration this year, reflecting a trend of federal reliability actions accelerating amid surging demand and resource retirements. The order underscores the challenges faced by grid operators in balancing reliability, affordability, and environmental concerns as the energy sector undergoes significant transitions.
The DOE’s order may spark debate about the role of federal intervention in grid reliability and the balance between environmental regulations and energy security. It also highlights the need for careful planning and investment in grid infrastructure to ensure reliability as the energy mix evolves. The order could influence future decisions about resource retirements and the role of emergency measures in maintaining grid stability. As the energy sector continues to evolve, the tension between reliability, affordability, and environmental goals will likely remain a critical issue for policymakers, regulators, and industry stakeholders.