We Find Significant Savings with Zero Upfront Costs

PJM’s capacity prices have been on the rise. Recent base residual auction results for the 2026/27 delivery year just increased by an additional 22%. Previous auction prices for the 2025/26 delivery year had already skyrocketed by nearly 500%, driving up electricity bills for consumers throughout the region. For commercial and industrial customers located on the PJM grid (Pennsylvania, New Jersey, Maryland, Delaware, Washington DC, Virginia, West Virginia, Ohio, Kentucky, Illinois), energy prices are about to get higher. In this article, we will outline why PJM capacity prices are going up again, what this means for your electric bill in the years to come, and various strategies for combating rising costs.

In today’s volatile electricity markets, commercial and industrial energy buyers need more than just a good price, they need the right contract structure. One often-overlooked clause in electricity supply agreements can cost, or save, businesses tens of thousands of dollars over the life of a contract: the bi-lateral capacity true-up. With PJM’s recent capacity price hikes and a new cap-and-collar mechanism in place through 2028, understanding this clause has never been more critical.

Electricity costs are climbing rapidly across the PJM territory, putting pressure on commercial and industrial (C&I) customers to take control of their energy spending. One of the most powerful ways to reduce electricity costs is by targeting peak demand, the times when your facility’s energy use is at its highest. This strategy, known as peak shaving, can significantly lower future capacity charges and protect your bottom line. In this article, we’ll explain how peak shaving works, why it’s especially important now, and simple ways your business can implement it.