PJM Capacity Auction Adds 22% for Most Consumers

Zach Reynolds

July 23, 2025

PJM Capacity Auction Adds 22% for Most Consumers

The PJM Capacity results are in and capacity costs across the RTO will remain high for at least another year with costs rising unexpectedly for most regions. After spiking nearly tenfold in June because of the auction held last year, these results represent an additional 22% increase for most consumers that will start in June 2026.

Key Impacts:

The most recent PJM Capacity auction used price parameters set under an agreement negotiated at FERC earlier this year.
The June 2026 – May 2027 auction rates were set, with the price for the entire RTO coming in at $329.17.
Capacity costs in Baltimore Gas and Electric’s (BGE) territory will fall from approximately 3.2 cents per kWh today to just over 2 cents per kWh starting next June.
Customers with lower load factors (those with inconsistent energy demand) will experience even higher cost increases.

Fixed-Price Contracts May Be Affected

Even customers on fixed-price agreements are likely to see increases, as contract clauses allow for pass-through adjustments in response to extreme market changes.

For more information about this or other developing regulatory matters that may affect your energy supply costs please contact your Tradition Energy Advisor.

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