PJM, the largest power grid operator in the U.S. serving 67 million people across the East Coast and Midwest, issued emergency electricity reduction orders on July 3 due to a severe heatwave straining its system. The surge in demand, driven by air conditioning and exacerbated by generator outages, pushed electricity usage towards a 20-year record of 165.6 GW. PJM also curbed exports to neighboring grids and relied on costly standby fossil fuel plants to maintain supply, leading to wholesale electricity prices exceeding $2,500 per MWh, significantly higher than typical rates. This event highlights the grid's ongoing struggle with increased demand from data centers and electric vehicles.