PJM auction adds $6.3 billion to electricity rates in 13 states

The regional grid operator PJM released the results of its annual capacity auction, showing that the latest round will increase electricity costs by about $6.3 billion for customers in 13 Eastern states and the District of Columbia. The added cost, which will affect roughly 67 million people, is driven primarily by the growing power demand of data centers.

PJM’s president David Mills said, “These auction results show that demand for electricity continues to grow faster than electricity supply.” State officials, including New York’s new moratorium on data‑center construction and Pennsylvania Governor Josh Shapiro’s lawsuit and settlement that capped the auction price, have expressed frustration over rising rates and the grid’s limited ability to add new generation, solar, wind and storage resources. The auction’s outcome will shape retail electricity rates for the next two years and influence cost trends through 2028.