Understanding Capacity: AEP Energy’s Guide to Navigating Rising Energy Costs

As energy markets evolve, understanding the forces behind your electricity costs is more important than ever. AEP Energy’s Understanding Capacity Series is a must-watch for businesses looking to stay ahead of the curve and make informed energy decisions in the face of rising capacity costs.

What’s in the Series?

This insightful video series features AEP Energy’s top experts—Brian Whitlatch (Senior Vice President) and Adam Kirk (Vice President)—who break down the complexities of the 2025–2026 PJM Capacity Auction and what it means for your business.

Here’s a quick look at what each video covers:

• Capacity Auction Overview – Learn how the PJM Interconnection’s capacity auction works and why the recent results are causing a significant increase in capacity costs.
• Why Did Capacity Costs Rise? – Discover the key drivers behind the spike in capacity prices, including supply constraints, regulatory changes, and evolving grid reliability needs.
• How It Impacts Your Bottom Line – Understand how these changes could affect your energy bills and what you can do to mitigate the impact.
• How AEP Energy Can Help – Explore tailored strategies and solutions AEP Energy offers to help your business manage risk, control costs, and plan for the future.
• Preparing for the Future – Get expert advice on how to build a proactive energy strategy that aligns with your operational goals and sustainability initiatives.

Why This Matters

Capacity charges can make up a significant portion of your energy bill—sometimes up to 40%. With prices on the rise, businesses that understand and plan for these changes will be better positioned to manage costs and maintain competitiveness.

Take Action

AEP Energy doesn’t just explain the problem—they offer customized solutions. Whether it’s through demand response programs, strategic procurement, or energy efficiency initiatives, their team is ready to help you navigate this complex landscape.

Watch the full series and discover how to future-proof your energy strategy.

AEP Energy does not guarantee the accuracy, timeliness, suitability, completeness, freedom from error, or value of any information herein. The information presented is provided “as is”, “as available”, and for informational purposes only, speaks only to events or circumstances on or before the date it is presented, and should not be construed as advice, a recommendation, or a guarantee of future results. AEP Energy disclaims any and all liabilities and warranties related hereto, including any obligation to update or correct the information herein. Summaries and website links included herein (collectively, “Links”) are not under AEP Energy’s control and are provided for reference only and not for commercial purposes. AEP Energy does not endorse or approve of the Links or related information and does not provide any warranty of any kind or nature related thereto.