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.
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.
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.
Price Elasticity Of Energy Demand
In deregulated energy markets, understanding how electricity usage changes in response to price shifts can give brokers and businesses a major advantage. By leveraging price elasticity insights, energy buyers can align procurement strategies, manage risk, and uncover new opportunities to reduce costs in volatile market conditions.
Is Demand Response the Answer To Rising PJM Capacity Costs? Here’s What You Need To Know
With PJM capacity prices spiking to record levels, many large energy users are searching for ways to reduce their exposure and protect their budgets. Demand response offers a unique opportunity to not only earn payments for curtailing load but also lower future capacity charges when paired with effective peak management strategies.