PJM Auction Secures 138,318 MW of Capacity at Capped Price

PJM Interconnection announced July 14 that its 2028/2029 Base Residual Auction secured 138,318 MW of unforced capacity generation and demand response. Regions operating under the Fixed Resource Requirement added 10,864 MW, bringing total available capacity to 149,182 MW. The total remains 6,831 MW below the grid operator's reliability requirement.

The shortfall equals the output of nearly seven traditional nuclear reactors and marks the third straight auction that has missed the target. The clearing price reached the FERC-approved ceiling of $325 per megawatt-day, a 2.5 percent decline from the prior auction's cap of $333.44. Payouts to generators for the delivery year beginning June 2028 totaled $16.4 billion.

PJM power prices rose 76 percent in the first quarter of 2026, driven by data-center demand, according to the grid's independent market monitor. The auction was the third conducted under a FERC-approved price collar. PJM CEO David Mills said the results show demand for electricity continues to grow faster than supply.

He added that the imbalance affects system reliability and consumer costs, and that the operator is working with government and industry leaders to add generation and manage new load. PJM plans to seek FERC approval for a special Backstop Procurement in September 2026 to address the shortfall.