PJM Interconnection has formally requested Federal Energy Regulatory Commission approval for two initiatives designed to streamline the integration of new power generation and moderate potential increases in capacity prices. The petition, submitted on February 27, 2026, addresses the escalating demand for electricity, largely attributed to the expansion of data centers. One proposal introduces an “expedited

ISO New England has published an updated version of its 2026 Annual Work Plan, detailing progress on key initiatives aimed at bolstering the reliability and cost-efficiency of the region’s electric power system. Significant reforms to capacity auctions are underway, following Federal Energy Regulatory Commission approval of the initial phase. This includes accelerating the auction schedule

PJM Interconnection has formally requested a modification to its operational guidelines, seeking to prolong existing price controls within its capacity auctions. The proposal, formally submitted on February 27, 2026, aims to extend the current price ceiling of $325 per megawatt and a price floor of $175 per megawatt through the 2028/2029 and 2029/2030 delivery years.

Delaware’s Public Advocate is advocating for PJM Interconnection to maintain a price cap within its capacity auctions, citing concerns about potentially billions of dollars in increased costs for electricity consumers. Jameson Tweedie, Delaware Public Advocate, formally requested the extension from PJM on January 30th. PJM agreed on February 12th to pursue an extension of the

Delaware’s Public Advocate is requesting PJM Interconnection to prolong a price cap on capacity auctions to prevent potential increases in electricity costs for consumers. Jameson Tweedie, Delaware’s Public Advocate, formally requested the extension on January 30th, and PJM has agreed to pursue it for upcoming auctions. PJM conducts capacity auctions to ensure adequate electricity generation

PJM Interconnection will institute price caps in future capacity auctions for a two-year period, responding to pressure from Pennsylvania Governor Josh Shapiro. This action mirrors a similar intervention implemented for the July 2025 auction. The newly imposed price controls are intended to mitigate potential increases in electricity costs for consumers. However, the measure raises concerns

A federal appeals court has affirmed the Federal Energy Regulatory Commission’s (FERC) authority regarding the participation of energy efficiency resources in electricity capacity auctions managed by PJM Interconnection. The D.C. Circuit’s decision, announced Tuesday, supports FERC’s previous endorsements of a proposal by PJM Interconnection to exclude energy efficiency resources from these auctions. PJM Interconnection operates

The PJM Interconnection, responsible for managing the electrical grid across multiple states, is facing significant hurdles as capacity costs skyrocket due to the rapid expansion of data centers, which now account for approximately 40% of its capacity expenses. In response, a proposed intervention from the Trump administration and several state governors aims to establish an emergency auction specifically for data centers in the PJM region, with the goal of mitigating escalating costs and stabilizing prices through the reinstatement of temporary price controls and incentives for power procurement from new sources.

A growing concern is emerging over the impact of energy-intensive data centers on the regional power grid, particularly in Pennsylvania, where a surge in electricity rates has led to worries about affordability and reliability. The expansion of hyperscale facilities designed to support artificial intelligence, such as one proposed center that could consume the equivalent of 140,000 homes' worth of electricity, is driving up demand for power, leading to increased transmission costs, energy market prices, and capacity market prices, with prices reaching as high as $269.92 per megawatt-day in recent auctions.

The independent market monitor of America's largest electricity market has escalated tensions by filing a complaint with federal regulators, urging PJM Interconnection to halt the connection of new large data centers that it cannot reliably serve. This move is part of a months-long debate among utilities, power producers, consumer advocates, and elected officials seeking solutions to accommodate the surge in data center demand without driving up electricity prices, which have already increased by 20% in some areas due to the added costs of capacity auctions on the grid's reliability.

A recent report from Monitoring Analytics reveals a significant surge in wholesale electricity prices in the PJM Interconnection region during the first nine months of 2025, with average locational marginal price increasing by 47% compared to the same period in 2024. The primary drivers of this increase were rising fuel and consumable costs, as well as transmission penalties and scarcity pricing, resulting in a 44% year-over-year increase in overall wholesale power costs, with energy costs making up the majority of these expenses.