“PJM Capacity Auction Comparative Analysis” sounds like a dry topic for the average person who has never heard of PJM Interconnection and doesn’t know what a regional transmission organization (RTO) does.
Who really cares about “zonal caps for constrained areas in the 2025/26 auction?” That’s a real yawner, right?
Not to people in Maryland who could see their electric rates go up by as much as 24%. They care.
Not to the 1.7 million customers of PECO in southeastern Pennsylvania who could see their rates rise by 12.3% (with further hikes expected). They care.
And over the next 2 years in PJM’s service territory (all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia), carbon-free nuclear is expected to remain steady at around 20% of the resource mix while gas increases from 43% to 48% and coal declines from 22% to 18%.
There’s lots to care about in this data-rich report from Arcus Power Corp.
And over the next 5-10 years, people who never cared about electricity (or thought about it much) are in for a shock when it comes to the price and reliability of their electric service.
#energy #problemsolverswanted #utilities
![View organization page for Arcus Power Corp]()
PJM’s Capacity Market is Facing Some Big Shifts—Here’s What to Watch
Capacity prices jumped from $28.92/MW-day (2024/25) to $269.92/MW-day (2025/26)—a ninefold increase that pushed consumer costs from $2.1 billion to $14.7 billion. Supply constraints, demand growth, and regulatory changes are driving this sharp rise, putting additional pressure on market participants.
At the same time, interconnection delays are slowing down ~38,000 MW of projects, limiting new capacity additions. Transmission bottlenecks in key zones like BGE and DOM are adding to price volatility, creating significant cost impacts for consumers.
There are clear opportunities to ease these pressures. Faster permitting could accelerate new generation, transmission upgrades would help alleviate congestion, and a more diverse resource mix could improve long-term stability.
The market is shifting quickly, and how these challenges are addressed will shape PJM Interconnection’s future. What are your thoughts on the best path forward?
#CapacityAuction #PJM #ArcusPower
