PJM 2026/27 Base Residual Auction Results: Record Capacity Prices in PJM
On July 22, 2025, PJM Interconnection released the results of its 2026/2027 Base Residual Auction (BRA), clearing at a record-high FERC-imposed cap of $329.17 per megawatt-day. This 22% increase from the previous year signifies escalating demand and tightening capacity across PJM's 13-state region, leading to continued elevated electricity prices for industrial and commercial energy users.
How Are Commercial Electricity Rates Determined?
Commercial electricity rates are influenced by a complex interplay of generation, transmission, and capacity costs, alongside local market dynamics. Understanding these key factors and how they are calculated is essential for businesses seeking to manage and reduce their electricity expenses.
Energy Procurement Management: Process, Benefits & Best Practices
Energy procurement management is a strategic process crucial for businesses looking to control energy costs, especially in deregulated energy states. This article will outline the energy procurement management process, highlight best practices, and explain why many businesses trust Diversegy with their procurement plans.
On-Site Power Generation: How Large Energy Users Are Making Their Own Power To Offset Rising Capacity Costs
Rising capacity charges, unpredictable market prices, and mounting sustainability targets are prompting a growing number of businesses to generate their own electricity on-site. This article explores the forces driving adoption, the technologies leading the movement, and how companies are using on-site generation to protect their bottom line.
Natural Gas Futures And Speculation In Energy Markets
Natural gas futures are pivotal in commercial energy retail pricing, particularly in deregulated markets where suppliers offer various fixed-price options. Understanding how speculative trading, hedging, and overall market outlook drive these futures markets is essential for energy buyers to manage cost risk and time supply contracts effectively.
Minimum Offer Price Rule (MOPR) And Its Impact On PJM Capacity Market Participants
The Minimum Offer Price Rule (MOPR) is a controversial policy in the PJM capacity market, designed to prevent market manipulation by ensuring state-supported power plants bid at a fair minimum price. Understanding MOPR is crucial for brokers, consultants, and large energy users to navigate procurement strategies and predict capacity costs in this evolving market.