PJM is another great day to own a power generation facility. This is another rough for most payers.
The PJM has announced the results of its latest base residual auction (BRA), in which the largest grid operator in the United States acquired the power requirements of more than 67 million people in the 13 states of the year of June 1, 2026-31, May 2026-31, 2027. Results?
The price is as high as it may be as high as possible All Zone: 9 329.17/MW Day.
Despite the PJM, operational renewable and battery projects need to be bidding for the first time in their capacity market, with cleared resource mixed fossil fuel -based breed. This includes 45 % natural gas, 21 % nuclear, 22 % coal, 4 % hydro, 3 % air and 1 % solar. Last year, PJM received 3 % more gas, 4 % less coal, and 2 % lower air electricity.
Overall, the PJM acquired 134,311 MW (MW) of the UCAP (UCAP) and demanded demand. Under the requirement of fixed resources, areas obtained an additional 11,933 MW in the UCAP, which is available to meet the Grand Total 146,244 MW (UCAP) peak electricity demand, as well as a small reserve margin. The UCAP represents the maximum production of a generation resource, which is adjusted to its estimation capacity to perform reliably at the time of high system risk.
Had a clean volume of auction Unlikely Excessive reliability of PJM, 146,105 MW, indicates how strict the power supply is currently because we spend billions of dollars and spend the Uncle Gigwat (GW) while trying to make God in the machine. It also describes why each zone has received the highest price by federal regulators.
Place a lid on it
Along with the auction of last summer, someone has shouted in the crowded theater as well as the PJM’s announcement that the prices in most zones have increased by almost tenfold, which has increased by 28.92 per megawatt day, which was cleared earlier.
Earlier this year, the PJM responded to a complaint filed by Pennsylvania Governor Josh Shapiro with the Federal Energy Regulatory Commission (FERC), the PJM agreed to save its next two power auctions (this one and next December 2025) to save the price from 329.17/MW. Each generator of electricity selected at the 2026/2027 auction will receive this amount, which is more than 269.92/MW day in most zone of the Regional Transmission Operator (RTO) auction.
In the last year’s auction, the BGE and the Dominine Zone were cleared of 466.35/MW and 444.26/MW daily, which means some possible relief by increasing the year 2024/2025.
What will it do with my power bill?
The wholesale capacity data center is a relatively small section of retail electricity bills in the Heavy PJM region. The RTO is expected to increase the cost of the cap in some consumer bills by 1.5 % to 5 % year -on -year, depending on how the burden companies and states can control the wholesale costs of consumers. Given that prices in two zones, PJM were less than last year Recognizes that it is Technically It is possible for consumers in some areas Seeing a decrease in retail prices.
I live in New Jersey, which had to eat a 20 % increase after last summer auction. I will tell you if my bill goes down, but I’m not counting on it. Earlier this month, New Jersey representative Josh Gothemeer sent PJM President Manu Asthana an old -fashioned, harsh word letter asking what the RTO was doing to avoid the “unnecessary burden of cost on the payers”.
“Our aim is to get a better understanding of PJM’s actions to ensure that millions of families and seniors coming to the PJM region do not face further increase in prices in their electricity bills,” said Gothomers and nine other members of the Congress.
The previous complaint filed with the Federal Regulators came to the request of several organizations in which the FERC demanded that the PJM should reform the market rules. It has been alleged that the PJM has failed to connect new power projects to the grid quite faster, which could cost those who pay $ 20 billion or more over the next two years. Although matters are now moving forward since the beginning of the year, a quick look at the PJM line shows how these groups were reduced.
PJM’s current row
The largest power grid operator in the United States has predicted that its 2025 peak demand will increase by 30 GW by 2030, which is largely attributed to the growth of the data center in the region. Fortunately, a long line of renewable generation projects comes online, and is ready to reduce capacity prices by increasing competitiveness. The PJM did not accept new requests for combination of 2022, when it stopped its row to assess the reforms to adjust the mass spikes in studies.
As of July 21, 2025, the PJM row contains 2,025 projects, with more than 209 GW potential. Unlike the resources stored in the RTO familiar auction, the PJM row is almost fully renewable sources: 74.64 GW solar, 37.21 GW battery energy storage, 19.37 GW of off -shore, and 11.9 GW of the high air, 16.5 GW of the gas.
Are things getting better in PJM?
Although stakeholders had only a year to react to the results of the auction falling from the jaw last July, PJM claims that the auction of 2025/2026 is responding to an investment signal, highlighting some silver lining.
- New ability: The total amount of new generation and generation uprates at the auction of 2026/2027 was 2,669 MW UCAP. It represents the first increase in the new generation and uprates in the last four auctions.
- Disabled from withdrawn.: Since the results of the 2025/2026 base residual auction were published on July 30, 2024, 17 units producing units, of which a total of 1,100 MW worth of capacity have been returned.
- Long -term investment: When the auction did not affect, the PJM’s reliable resource move this year attracted 11,000 MW (ICAP) to upgrade new projects and current generators, which indicated significant interest by investors. The ICAP or the installed capacity represents the maximum production of any resources.
This year’s auction includes changes in the principle:
- The above mentioned renewable sources must present the aforementioned requirements
- $ 0 specific reliability offers mandatory operating units, which raised prices last year
- Retirement of Energy Savings Plan Category
- 329.17/MW of a FERC set price cap and 7 177.24/MW price floor (maybe a day!)
Will prices continue to rise in PJM? Or more importantly, will the lights continue?
According to North America’s Electric Vishnitiata Corporation, the RTO, which has only 139 MW UCAP, has definitely introduced some reliable concerns, though the PJM has said that it is in North America’s Electric Vishnitia Corporation, according to the United States.
The PJM says it has focused on expanding its process to integrate the new generation of resources, which includes cleaning all the projects in the next 18 months, opening up its new cycle process in spring 2026, and contributing to Google to reduce the processing time. The PJM also hopes that the recent proposals will increase the supply of recent suggestions, the recent suggestions regarding the rights of the surplus interconnection service and the FERC -approved relief Resource Initiative.
The PJM has noted that it has processed more than 60 % transfer back blog in the line of connectivity under its FERC reform process, which has reviewed another 63,000 MW (ICAP) in 2025 and 2026. China’s obstacles and developing project economics.
The next base for 2027/2028 is scheduled for December 2025, as PJM works to resume its three -year forward planning cycle. A detailed report of the results is available on PJM’s capacity market web page.
