The Ohio Manufacturers’ Association (OMA) is renewing concerns about rising electricity costs following this week’s release of PJM Interconnection’s latest capacity auction results, warning that persistent price spikes threaten Ohio’s manufacturing competitiveness.

On Wednesday, PJM posted the results of its capacity auction for the 2027–28 delivery year. For the second auction in a row, prices hit a temporary price ceiling, with capacity clearing at $333.44 per megawatt-day, an unprecedented high for the PJM region.

“PJM’s announcement of record-high electricity prices is as unacceptable as it is unsurprising,” said Ryan Augsburger, OMA president. “PJM is broken. It needs new leadership and immediate reform.”

PJM operates the electric grid and wholesale power markets across 13 states and the District of Columbia, including Ohio. Recent capacity auctions have produced historically high prices, driving up electricity costs for manufacturers, other employers and consumers across the region.

Those outcomes reflect deeper problems in PJM’s market design and planning process. The interconnection queue remains paused to new generation applications, preventing developers from responding to high price signals and bringing new supply online. At the same time, prolonged interconnection studies and inflated load forecasts have distorted the market, creating an artificial shortage that forces customers to absorb billions of dollars in unnecessary costs.

OMA energy engineers will analyze the latest auction results and publish a memo with key takeaways so members can better understand how the outcomes affect electricity bills and market conditions in Ohio.

Ongoing advocacy is focused on urging PJM leadership and regulators to address interconnection backlogs and reform market rules to support timely investment in new generation and reliable, affordable power for Ohio manufacturers. 12/18/2025