PJM Interconnection Capacity Prices Anticipated to Reach Federally Approved Caps Due to Market Imbalances - Cozzy Energy Solutions
The PJM Interconnection, which serves 13 states in the US, is expected to reach federally approved price caps due to ongoing market imbalances and a shortage of electricity supply to meet growing demand. Despite efforts to add new capacity through initiatives such as the Reliability Resource Initiative, prices remain high, with the recent 2026-27 delivery year auction clearing at a record high of $329.17/MW-day, driven by constrained supply and surging demand from data centers and other large load users, adding complexity to the market's operations and pricing structure.
