"Data center construction and clogged-up generation queues are driving costs — and political backlash — in the country’s biggest power market."
"Booming data center growth and sluggish power plant construction are driving up electricity costs in the country’s biggest energy market.
On Wednesday, PJM Interconnection announced the results of its latest capacity auction, which sets the price of resources needed to meet peak power demands for a grid serving more than 65 million people in 13 states and Washington, D.C.
Capacity prices for delivery in the 2027-2028 period hit a new record of $16.4 billion, up from $16.1 billion in July and $14.7 billion in 2024. That will put more upward pressure on utility bills, which are already expected to rise between 1.5% and 5% for some PJM customers in the 12-month period starting in June 2026.
Even higher capacity costs could follow at the next auction in summer 2026. This time around, prices were kept in check by a limit instituted in April through a settlement agreement between PJM and Pennsylvania Gov. Josh Shapiro (D). But that price cap is set to expire after this auction."
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