Abstract: A method and system are disclosed to enable and control over-subscription in a blade/chassis system and to provide the capability to recover in the event of the loss of a redundant power supply. An over-subscription policy is determined by a system administrator and is set in the chassis management module. Information regarding the maximum power allocation needed for each blade being powered by the power supply system is identified by the blade and stored in its VPD or otherwise made available to the chassis management module. The management module of the chassis in which the blades and power supplies are located uses this information to manage the subscription of blades and the over-subscription of blades when appropriate. If throttling is required, the system also allows a predetermined blade priority to be used to identify which blades will be reduced in power.