PJM paid record prices for firm capacity in three consecutive auctions while still facing a shortage of 6,831 megawatts. The issue does not lie with the price level itself but rather with how availability is measured within the system. On July 14, 2026, PJM Interconnection announced that its capacity auction for the delivery year 2028/2029

PJM Interconnection is seeking to modify its procedures for connecting power generation and battery storage systems near existing power plants. Since 2023, PJM has approved two out of eight applications for surplus interconnection service, a process that allows new generators or energy storage facilities to connect to the grid utilizing unused capacity at established power

A report released by the New Jersey Board of Public Utilities indicates shortcomings in the capacity market managed by PJM Interconnection, a regional grid operator responsible for power reliability across 13 states and the District of Columbia. The findings were presented to Governor Mikie Sherrill and state lawmakers, following an approximate 20% increase in electricity

PJM’s recent release of its annual capacity auction results for the delivery year beginning in 2028 represents a notable development within the energy sector. The auction determines pricing and secures power generation commitments to meet future demand. For much of the previous century, electric utilities operated independently, constructing their own generation facilities to serve customers.

Federal regulators have approved changes to New York’s capacity market rules designed to address seasonal reliability challenges. The Federal Energy Regulatory Commission authorized the revisions submitted by the New York Independent System Operator, Inc. (NYISO) on June 26, 2026. These adjustments are intended to improve communication of pricing signals and ensure sufficient power generation during

Power Bills Across East Coast Expected to Rise Amid Heat Wave and Capacity Market Increases Miami, Florida – A severe heat wave has put significant strain on America's largest power grid this week, while a gradual increase in electricity prices is already impacting customers due to changes in the capacity market. Residents from Chicago to

Danskammer Energy, owner of the Danskammer Generating Station natural gas plant in Newburgh, has filed for Chapter 11 bankruptcy. The filing occurred on June 10th and cites unfavorable market conditions and a regulatory penalty as contributing factors. The power plant was initially built by Central Hudson Gas & Electric in the 1950s. Ownership changed several

It’s been roughly a year since capacity market prices in the mid-Atlantic region significantly increased, reaching price caps and prompting a national discussion regarding whether energy markets are adequately prepared for the age of artificial intelligence. Grid operator PJM is currently facing a complex set of changes, driven by demand that the RTO itself acknowledges

A federal watchdog agency, Monitoring Analytics, has reported a significant surge in electricity prices within the PJM Interconnection region, attributing a 75.5% increase directly to the proliferation of data centers. The watchdog’s assessment highlights substantial impacts on consumers, deeming these effects “irreversible.” Wholesale electricity prices have risen considerably, from $77.78 per MWh in the first

Wholesale electricity prices in the Eastern United States have surged nearly 76% according to a recently released report, a change largely attributed to the rapid expansion of artificial intelligence data centers. The PJM Interconnection, which manages the wholesale electric power market for 13 states—Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania,

PJM Interconnection Outlines Options for Market Reform The PJM Interconnection has presented three potential approaches to reforming its market structures, aimed at guaranteeing adequate power supplies for its 13-state region amid rising energy demands. These frameworks, detailed in a white paper titled Powering Reliability Through Market Design, address concerns about maintaining grid stability and attracting

FERC Approves New Capacity Market for New England The Federal Energy Regulatory Commission approved revisions to the Transmission, Markets and Services Tariff of ISO New England Inc. (ISO-NE) on March 30, 2026. The revisions primarily replace the existing Forward Capacity Market (FCM) with a prompt capacity market. Under the revised tariff, an Annual Capacity Auction

Governor Wes Moore announced Friday that the PJM Interconnection’s governing board has approved a continuation of the capacity market price cap, a policy intended to reduce electric bills for consumers. Moore said the action prioritizes the financial well-being of Maryland residents over the interests of PJM companies and their investors. He added that the continued

Governor Wes Moore announced the PJM Interconnection’s Board of Managers has approved an extension of its capacity market price cap, effective until the end of the decade. The extension follows advocacy from Moore and 13 other governors, intended to limit potential rises in electricity rates during ongoing market reforms. Maryland officials project the extension will

ISO New England Releases Methodology for Capacity Market Changes ISO New England has released information concerning the procedures used to assess the potential consequences of proposed revisions to the capacity market. This disclosure precedes the publication of the initial results of the analysis. The analysis, focused on Capacity Auction Reform (CAR) impact, utilizes specific assumptions

The Independent Electricity System Operator is reviewing its hourly demand response program due to issues with partial activations and a rise in standby notifications. The 2025 procurement process secured capacity through hourly demand response, which accounted for over half the total secured. Hourly demand response is divided into two categories: virtual and physical. Virtual hourly

American Electric Power (AEP) utilities are seeking to sell off excess electricity capacity originally set aside for data centers that never materialized, citing a desire to increase capacity availability and reduce prices for consumers. AEP has requested a waiver from FERC rules to allow it to offer up to 750 MW of power in an upcoming auction, with PJM Power Providers Group (P3) supporting the request, but Monitoring Analytics is challenging the proposal, arguing that it would unfairly compete with generators who bear market risk and undermine the market's stability.

The PJM Interconnection region's rapid expansion of data centers poses significant concerns about grid reliability and infrastructure strain, prompting governors from Virginia, Maryland, Pennsylvania, and New Jersey to propose an innovative solution: integrating data centers into the capacity market as flexible load resources, offering compensation in exchange for curtailing energy consumption during periods of grid stress.

The rapid expansion of data centers is placing a significant strain on the PJM Interconnection power grid, particularly in the Illinois and Pennsylvania regions, as projections indicate that an additional 22 to 30 gigawatts of electricity will be required by 2031. This surge in demand poses a major challenge for regional power grids, resulting in increased capacity charges for consumers, with costs potentially rising dramatically, adding up to $70 per month on average electricity bills, and raising the risk of rolling blackouts if left unaddressed.

The rapidly growing demand for data centers in Maryland is having a significant impact on local residents and businesses in the PJM region, as they absorb substantial costs related to the capacity market and necessary transmission upgrades. These expenses, totaling billions of dollars, are currently being passed on to consumers through regulatory mechanisms, placing an increasing burden on households and businesses within the affected areas.

A significant surge in electricity demand, largely driven by rapidly expanding data centers, is placing undue stress on Maryland's power grid, resulting in a 800% price increase in the 2024 capacity market auction. This unprecedented jump has led to projected monthly bills of approximately $30 for BGE customers during the fall and spring of 2025, with no expected additional charges during the summer months. The Maryland Office of People’s Counsel has filed a complaint with federal authorities in an effort to secure refunds for affected consumers, while regulatory changes have been implemented to mitigate similar price fluctuations in the future.

Maryland's electricity consumers are facing a noticeable increase in their monthly bills due to a complex interplay of factors affecting the state's energy infrastructure and market dynamics. A key driver is the recent strain on Maryland's capacity market, which has resulted in escalated prices passed on to residents as the system tries to guarantee adequate power generation to meet demand. Beyond this, costs associated with grid upgrades and renewable energy expansion are also contributing to higher bills, leading to increased dissatisfaction among consumers who feel they lack control over their energy expenses.