PJM capacity prices have spiked in back-to-back auctions, prompting new concern among consumers about future energy costs. Ohio Manufacturers’ Association (OMA) energy engineers reviewed the latest auction results and released a memo outlining the key drivers behind the price jump and the steps PJM is taking to fix problems in its market.

The analysis points to several factors behind the surge in prices: PJM continues to discount generation that is available on paper, the region saw a four-year pause in new generator interconnection applications, and utilities submitted load forecasts that appear unrealistically high.

The next capacity auction, for the 2027-28 delivery year, is scheduled for this month, with results set for release on Wednesday, Dec. 17. OMA will track the outcome and its impact on member energy bills. 12/10/2025