July 23, 2025
On Tuesday, July 22, PJM Interconnection — the regional transmission organization (RTO) responsible for reliable electricity service across 13 states and the District of Columbia — announced the results of its latest capacity auction. This auction determines the price of reserve power that electricity providers must secure to meet future demand and maintain grid reliability. These prices significantly influence what its 67 million customers pay for electricity. In this auction, the entire PJM region cleared at the newly FERC-approved cap of $329.17 per megawatt-day. PJM estimates the result will raise customer bills by 1.5% to 5%.
STATEMENT BY ROB KELTER, MANAGING ATTORNEY, ENVIRONMENTAL LAW & POLICY CENTER
“PJM’s predictable auction results are expected to raise electricity bills for customers in Ohio and Northern Illinois by another 1.5% to 5% starting next year. This hike is driven primarily by the rapid load growth from data centers but exacerbated by PJM’s continued failure to fix its flawed process for approving new power plants.
These results underscore the urgent need to invest in distributed energy resources, energy efficiency, and demand response — proven, cost-effective tools that can quickly reduce demand, ease pressure on the grid, and lower costs for all utility customers across the state.”