The extreme heat and rising demand pose significant risks to the U.S. power grid. High temperatures can reduce the efficiency of transmission lines, accelerate wear on transformers, and increase the likelihood of outages. Drought conditions are expected to impact 62% of the continental U.S., potentially reducing hydropower generation and disrupting coal transportation via rivers. Regions such as the Northeast, Midwest, and Northwest are flagged for elevated reliability risks. Additionally, wildfire smoke can deposit conductive particulates on high-voltage equipment, increasing fault risks. These factors, combined with growing electricity consumption and natural gas demand, could lead to localized power shortages and operational challenges.