By: Nick Evans -December 11, 2025

The 13-state electric grid operator that serves Ohio is holding its second capacity auction of the year — setting a baseline electricity cost that will get baked into consumers’ bills in June 2027.

It’s the last such auction happening with a court-ordered cap on prices, and market watchers are warning next May’s auction could be dramatically higher.

PJM uses the capacity auction to ensure reliability. Power plants get paid by the megawatt hour for committing to produce electricity when demand peaks.

Just a few years ago, capacity prices were about $29 per megawatt hour. The rapid increase in demand from users like data centers, combined with shortening supply as older power plants are retired, has pushed capacity prices up.

The cap

The rates rose

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