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2026/2027 PJM Capacity Auction Outcome Will Jolt Electric Prices for Consumers

via Business Wire

Record-setting capacity auction price will result in another massive price spike

Illinois electric consumers opening their latest utility bills were shocked to discover a massive price spike (20-25%), due to the results of the last PJM Capacity Auction (2025-2026). Today, PJM released the results of next year’s auction for 2026-27. At $329.17/MW Day, the results were 22% higher than last year. It is now clear that substantially higher electric rates are here to stay unless policymakers act.

The 2026/2027 PJM Capacity Auction results, released today, showed a record-setting price of $329.17/MW day. For the average homeowner, this will mean a substantial increase starting in June 2026 on top of the 20-25% price hike they just experienced. These increases are largely the result of rapidly increasing demand to keep up with explosive data center growth.

“Today’s capacity auction results yet again demonstrate that the ComEd zone needs more capacity to satisfy growing demand for power. The fastest and cheapest way to get this additional capacity for customers is to build battery energy storage projects and build them now. The Illinois legislature is long overdue to pass legislation that instructs the Illinois Power Agency to procure low-cost battery storage projects to save ratepayers money,” said Jeff Danielson, Vice President of Advocacy at the Clean Grid Alliance.

“Experts have determined that 6 gigawatts of storage would save ALL ratepayers billions of dollars a year in direct energy costs and PJM capacity costs. Doing nothing will have a direct impact on ComEd customers – resulting in higher bills and a less reliable electric grid. The energy crisis is happening now, not at some future date. It is time for Illinois’ political leaders to lead on behalf of their constituents.”

Studies by the Power Bureau and the IPA have found that adding battery storage to the PJM grid in Illinois can help address this demand crisis and over time can lower prices.

About Clean Grid Alliance

Clean Grid Alliance (the Organization) works to create market opportunities for clean energy and transmission development in MISO, SPP & PJM (Illinois) and at the state & local level in multiple Midwestern states, including Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, North and South Dakota, Wisconsin and Ohio (local siting program). The Organization constitutes a diverse membership of clean energy advocacy organizations and businesses working collaboratively toward the Organization’s vision of delivering a clean energy grid in the Midwest.

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