PJM Capacity Auction Secures 149 GW but Falls Short of Reliability Target by 6,831 MW

PJM Interconnection's 2028/2029 Base Residual Auction secured 138,318 MW of unforced capacity and demand response plus 10,864 MW from Fixed Resource Requirement regions, for a total of 149,182 MW available to meet peak demand and reserve margins, @zerohedge reported.

The total fell 6,831 MW short of the reliability requirement, the third consecutive year the grid has missed its target and the first time the entire regional transmission organization has done so. The clearing price reached the approved cap of $325 per megawatt-day, 2.5 percent below the prior year's $333.44 cap.

Without the cap the price would have reached $554.72 per megawatt-day except in the COMED LDA, where it would have hit $776.69. Payouts to generators for the year beginning June 2028 totaled $16.4 billion. PJM plans to seek FERC approval for a special Backstop Procurement in September to address the shortfall.

The operator established price caps and floors for four auctions in coordination with the governors of its 13 states and FERC. PJM power prices rose 76 percent in the first quarter due to data center demand, according to Monitoring Analytics. CEO David Mills said demand for electricity continues to grow faster than supply and that PJM is working with government and industry leaders to bring on new generation and manage new load growth.

The grid serves 67 million customers across 13 states and Washington, DC. A July 23 FERC conference on grid governance is scheduled to address related concerns.