Electricity grid operator PJM Interconnection has opened the auction for electricity capacity for the 2026-2027 delivery year, an auction that will determine a key component of ratepayers’ bills next year.
Results are expected at the end of the month.
PJM is the grid operator for 13 states, including New Jersey, and the District of Columbia. It was PJM’s auction in 2024 that signaled the rapid growth in rates and an imbalance between supply and demand, sending politicians into a frenzy of hearings and legislation.
That auction saw a ninefold increase in price-per-megawatt-day that led directly to a minimum 17% to 20% hike in electricity supply rates in New Jersey that went into effect June 1. The impact of PJM auctions is reflected in pricing the following year.
Last year a complaint filed with federal authorities by Pennsylvania Gov. Josh Shapiro and joined by several other governors, including Phil Murphy, resulted in a settlement in which PJM agreed to enact a price cap in the auction for the following two years. The cap’s effect is expected to be closely monitored.
Contact the reporter, Vince Conti, at vconti@cmcherald.com.
