If you run a business in Pennsylvania, chances are you’ve noticed your electricity bills getting higher lately, and maybe even a lot higher.
You’re not alone. Many commercial and industrial customers are seeing spikes in their electric bills, even if they thought they had a fixed-rate supply contract. What’s going on?
The answer lies in something few business owners track closely: PJM capacity prices. Understanding how these prices work, and how they’re showing up on your bill, could be the difference between weathering the storm and bleeding thousands of dollars in unexpected energy costs.
Let’s break it down.
Why Are Electricity Prices Increasing in Pennsylvania?
Pennsylvania is part of the PJM Interconnection, the largest power grid in the U.S. Each year, PJM holds what’s called a Capacity Auction to ensure there will be enough electricity available in the future. Power plants get paid to promise they’ll be ready when needed, and those costs trickle down to businesses like yours.
Capacity prices in PJM are now skyrocketing:
- In the 2025/26 auction, prices jumped from just under $30/MW-day to $269.92/MW-day
- In the 2026/27 auction, prices rose another 22%, hitting $329.17/MW-day, the highest in PJM history.
Why? Demand is increasing rapidly due to data centers, electric vehicles, and economic growth, while older fossil fuel plants are retiring and new generation projects are stuck in interconnection delays.
This spike is now rippling through the retail electricity market. For example, PPL’s Price to Compare, a good benchmark for retail supply rates in PA, has more than doubled in recent years:
- Current Price: Over 12¢ per kWh
- 2020 Pricing: 6.0¢ per kWh
How Additional Capacity Costs Could Be Sneaking Into Your Electric Bill
You might think you’re safe from rate spikes if you signed a “fixed” contract with a retail electricity supplier.
Not necessarily.
Many retail supply contracts include fine-print clauses that allow suppliers to pass through higher capacity charges, even on so-called fixed-rate agreements. These pass-throughs often show up under vague names like:
- “Capacity Charge Adjustment”
- “Hybrid Capacity Fee”
- “Capacity Pass-Through”
That means your actual cost per kWh could quietly jump by 1-2¢ or more, even though your contract looks unchanged on paper. In the image below, the pass-through capacity line item increased this customer’s total price per kWh by 1.5¢ per kWh:
This is why many PA business owners are feeling blindsided. Many didn’t realize their contract had built-in exposure to market volatility.
What Can You Do About It? Comfort Profit Has Answers.
At Comfort Profit Consulting, we help Pennsylvania businesses like yours take back control of energy costs through a comprehensive utility audit.
Here’s how we help:
Audit Your Current Bills
We’ll analyze your electric bills to identify hidden charges and capacity pass-throughs that may be quietly inflating your costs.
Review Your Contract Terms
Our team will examine your supply agreement for clauses that allow capacity or transmission rate hikes. If you’re exposed, we’ll flag it and recommend next steps.
Guide Smarter Contract Negotiations
We help you structure future contracts that lock in your total price and eliminate surprises, so you’re not at the mercy of every market spike.
Reduce Your Capacity Tag
Your future capacity costs are based on your peak demand during the summer. We’ll advise you on how to lower your peak usage, potentially saving you thousands in the next capacity year.
Get a Free Utility Bill Audit Today
There’s no need to stay in the dark about what’s driving your electric bills higher. A free utility bill audit from Comfort Profit Consulting will show you exactly where you stand, and where you can save.
Whether you’re in manufacturing, retail, healthcare, or any energy-intensive industry in Pennsylvania, this is your chance to protect your bottom line before the next spike hits.Contact us today to schedule your no-cost, no-obligation audit.
