PJM’s Capacity Market

In July 2025, PJM, the largest grid operator in the United States, set record-high capacity prices, following the previous year’s staggering 800% surge. The July 2024 auction had already jolted markets, transforming a once-obscure wholesale mechanism into a headline-grabbing driver of rising electricity bills. Millions of families and small businesses are now feeling the impact. What was intended to ensure reliability is instead fueling higher costs and market distortions, undermining efforts to support clean, affordable energy. Beneath these striking figures lies a deeper issue: PJM’s capacity market is increasingly out of step with today’s energy landscape.

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