JM’s recent capacity auction has sent shockwaves through the energy industry. Capacity costs are set to skyrocket from $2.2 billion to $14.7 billion for the 2025/26 delivery year. Power plant retirements, increased load, and new market rules drive this unprecedented 568% increase.

Key takeaways:

1. Utilities in deregulated states are proposing re-entering the power generation business to address supply concerns.
2. State lawmakers are exploring legislation to spur new generation, including energy storage initiatives and revolving funds for power plant construction.
3. Regulators are skeptical about shifting generation financing risks from shareholders to customers.
4. Depending on location, Maryland could face electric bill increases of 2% to 24%.
5. The auction results have raised questions about PJM’s market structure and its ability to attract new investments.

Wondering what it means to your business? Reach out to our energy experts to start the conversation.

This situation highlights the urgent need for innovative solutions to ensure grid reliability and manage costs in the rapidly evolving energy landscape.

https://www.utilitydive.com/news/pjm-capacity-auction-results-firstenergy-exelon-aep/725952