How much will the 2026-2027 capacity auction cost?

The state warned that if no action is taken, the 2026/2027 auction will be “the most expensive” in capacity market history, estimating that ratepayers could be on the hook for up to $74 billion in avoidable costs over the next two years.

How much does a megawatt cost in 2025-2026?

In the most recent auction for the 2025-2026 capacity market period, capacity prices surged to nearly ten times higher than the previous year. The price jumped from about $29 per megawatt-day to nearly $270 per megawatt-day – an unprecedented increase.

Will PJM's Capacity Price be set for June 2026 – May 2027?

However, there’s additional complexity: Due to delays in PJM’s capacity auctions, the capacity price for the June 2026–May 2027 period hasn’t yet been set. Utilities have temporarily relied on interim “capacity proxy prices” in their procurement auctions.

Will PJM have a capacity shortage in 2026?

In a Dec. 9 letter to stakeholders, PJM Board Chair Mark Takahashi warned that a capacity shortage could emerge as early as the 2026/2027 delivery year.

Will PJM limit capacity prices in 2025?

In January 2025, PJM agreed to a settlement with a coalitition of governors led by Pennsylvania Governor Josh Shapiro to limit capacity prices for the next two years (2026-2027 and 2027-2028). This includes: If you are interested in diving into the details, you can find the full docket here.

What is a PJM stand-by power plant auction?

Each year, PJM (the grid operator) holds an auction where power plants bid to provide this stand-by capacity—essentially securing these "reservations" years in advance. The price set in this auction determines part of what you pay on your electric bill.