What PJM’s 2026/2027 Capacity Auction Means for Your Business’s Energy Costs

As a small business owner, staying informed about energy market trends can help you make smarter decisions about your electricity usage and costs. The results of the latest capacity auction for the 2026/2027 planning year demonstrate the trend that energy demand will continue to rise while incentivizing increasing supply.

What This Means for Your Business

Capacity auctions help ensure there is enough electricity supply to meet demand, especially during peak times. While the auction price rose, it is important to note that capacity costs represent only a portion of your total electricity rate. PJM estimates that this change could result in a 1.5-5% increase in retail electricity prices.

Key Takeaways from the 2026/2027 Auction

• 134,311 megawatts (MW) of electricity supply were secured to meet future demand.
• The clearing price for capacity reached $329.17 per MW-day, which is up from $269.92 in the previous auction.
• New generation resources are entering the market, and some previously retiring units have opted to remain operational.
• PJM’s forecasted peak demand increased by over 5,400 MW, driven by factors such as data center growth and electrification.

What’s Next?

PJM is working to return to a more predictable auction schedule, with the next auction (for the 2027/2028 planning year) scheduled for December 2025. This forward-looking approach helps stabilize prices and supports long-term planning for both energy providers and customers.

The Bottom Line

The latest PJM capacity auction is a positive sign that the grid is staying strong and reliable, even as demand grows. While prices are shifting, AEP Energy’s small business energy consultants are here to help you navigate those changes with low risk, fixed price agreements. Request a Quote to learn more.

If you’re a current customer and have questions about your energy plan or how it might affect your bill, contact your Account Management Team at 1-888-924-7111.

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