The results of PJM Interconnection’s latest capacity auction point to rising electricity costs for customers across Delaware and the broader Mid-Atlantic region beginning in the summer of 2026. PJM, the regional grid operator serving over 65 million people across 13 states and the District of Columbia, secured 134,311 megawatts of electricity generation in its Base Residual Auction for the 2026–2027 delivery year.
The auction, which ensures enough electricity is available during peak demand periods, cleared at the maximum price allowed, $329.17 per megawatt-day—across nearly all areas of the PJM grid. This marked a significant increase from last year’s clearing price of $269.92 for most zones, signaling a tightening supply-demand balance in the region.
For customers, this will likely mean higher costs will begin appearing in electric bills starting next year. PJM estimates that residential and commercial electricity users could see price increases ranging from 1.5% to 5%, depending on their location and utility provider. These charges, known as capacity costs, are built into overall electricity rates and are passed on by utilities and third-party suppliers.
The auction results reflect growing challenges in maintaining reliable power as demand surges, particularly from data centers and electrification, while generation growth remains limited. Although the auction saw a modest uptick in new and returning generation, about 2,669 megawatts from new builds or upgrades and 1,100 megawatts from previously retired units, this was just enough to meet reliability requirements with little surplus according to PJM.
The fuel mix procured was dominated by fossil and nuclear generation, with natural gas accounting for 45% of cleared capacity, coal at 22%, and nuclear at 21%. Renewables such as wind and solar made up less than 10% of the total.
While most customers in the PJM region will see higher costs, a few areas that cleared below the price cap may experience smaller increases or no change. Overall, the auction results serve as a warning that without accelerated development of new generation and infrastructure, reliability and affordability could both come under increasing pressure in the years ahead.
