Drivers of PJM’s Capacity Market Price Surge and the Impact to DC Electric Customers
Office of the People's Counsel for the District of Columbia
Project completed.
PJM Interconnection’s latest capacity market auction, for the 2025/2026 delivery year, resulted in the highest capacity prices ever seen in the region. System-wide prices rose from the 2024/2025 delivery year by a factor of nine, increasing from $28.92/MW-day to $269.92/MW-day. PJM-wide total capacity costs increased from $2.2 billion to $14.7 billion. The Office of People’s Counsel (OPC) for DC commissioned Synapse to evaluate these market dynamics, assess market reforms, and quantify both recent and anticipated bill impacts for electricity customers in Washington, DC.