[Market Monitor] PJM Capacity Auction Results – Slight Decrease Ahead

July 15, 2026

Good news, bad news. The latest PJM 2028/2029 Capacity Auction delivered a modest improvement, with the clearing price declining 2.5% from last year. However, capacity prices remain historically elevated across the RTO and once again cleared at the administrative price cap, reinforcing that capacity costs remain a significant driver of electricity prices.

Key Impacts:

• The June 2028 through May 2029 auction cleared at $325.00/MW-day across the entire PJM footprint, reflecting the revised price cap.
• This represents a 2.5% decrease from the prior delivery year. Customers with lower load factors, or more variable demand profiles, may see slightly greater relative cost reductions.
• Supply growth, including contributions from Demand Response resources, remained limited. As a result, reserve margins continue to fall below target levels amid increasing electricity demand.

Implications for Fixed-Price Contracts
Customers engaged in fixed-price agreements may have an opportunity to realize cost adjustments, depending on whether their contracts include bilateral provisions tied to capacity market outcomes.

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