December 18, 2025
COLUMBUS, OH – On Wednesday, December 17, 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 FERC-approved cap of $333.44 per megawatt-day – 1.3% higher than the last auction. These results could raise customer bills by 1.5% to 5%. This is the last PJM capacity auction in which the price cap remains in place to protect customers.
Ohio lawmakers are currently considering important legislation that could help curb rising electricity demand and ease pressure on the grid. These include bills to expand demand response programs, support community energy projects, and streamline local zoning processes – all steps that could quickly deliver cost-savings solutions for Ohio customers facing rising costs.
Rob Kelter, Managing Attorney, Environmental Law and Policy Center, said:
“PJM’s latest auction result is essentially a call to action for legislators and regulators to find ways to reduce demand. There are only two ways to help lower customers’ bills; increase supply or lower demand. Increasing supply takes years, but we can lower demand through utility run demand response programs in a matter of months.”
Mryia Willians, Ohio Program Director, Solar United Neighbors, said:
“Ohioans are already feeling the consequences of a grid that can’t keep up — higher bills, tighter capacity, and more uncertainty. When large projects take years to clear approvals, we need solutions that can deliver power now. Community Energy and demand response add local supply and flexibility on the distribution system, helping meet demand faster while longer-term fixes move forward.”
Nolan Rutschilling, Managing Director of Energy Policy, Ohio Environmental Council, said:
“Today’s auction results confirm that energy costs will continue to rise. Ohio leaders are preventing possible solutions by restricting renewable energy development through countywide bans. Ohio’s dedication to an all-of-the-above strategy is clear. However, delays in the supply chain for natural gas turbines mean we need to bring the most quickly deployable energy onto the grid to prevent blackouts and reduce costs before the next PJM auction. Renewable energy is the best option to meet these needs.”