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Posted 2 weeks ago | 2 minute read
PJM power auction sees prices clear at cap
An annual power market auction by PJM resulted in prices clearing at the FERC-approved cap, $329.17/MW-day UCAP (a generation resource’s maximum output, adjusted for its estimated ability to perform reliably at times of highest system risk), for the entire PJM footprint.
The latest Base Residual Auction (BRA) for 2026-27 secured 134,311MW of unforced capacity generation (UCAP) and demand response to meet projected electricity needs for more than 67 million people across 13 states and the District of Columbia.
PJM’s capacity market aims to ensure long-term reliability and stability of the grid by ensuring the appropriate amount of power supply resources (including demand response DR) to meet predicted energy demand. It enables organizations in the PJM region to turn energy from a cost center to a revenue and hedging strategy.
The price came in at the FERC-approved cap, $329.17/MW-day (UCAP), for the entire PJM footprint. This price compares with $269.92/MW-day for the 2025-26 auction for the RTO, except for the BGE and Dominion zones, which cleared at $466.35/MW-day and $444.26/MW-day, respectively.
Source: PJM
PJM expects the cap price to translate to a year-over-year increase of up to 5% in some customers’ bills, depending on how load serving entities and states pass on wholesale costs to consumers.
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