PJM’s latest capacity auction cleared at a record $329.17/MW-day, up 22% from last year, as data center demand keeps outpacing new generation. Nearly half the power-generating capacity cleared through the auction was natural gas. Solar? Just 1%. (Reuters)
The ratepayer POV: PJM expects power bills for homes and businesses to rise 1.5% to 5% year-over-year as a result of the latest auction results.
PA Gov. Josh Shapiro filed a complaint with federal regulators late last year criticizing the auction process as a flawed system that raises rates. Shapiro and PJM at that time agreed to cap the price at close to $330—a height this week’s auction reached.