VALLEY FORGE, PA — PJM Interconnection has cleared 134,311 megawatts (MW) of unforced capacity (UCAP) in its latest Base Residual Auction (BRA) for the 2026/2027 Delivery Year, meeting reliability targets for more than 67 million people across 13 states and the District of Columbia. The auction, which determines the price generators receive for committing to provide power in the future, closed at the Federal Energy Regulatory Commission (FERC)-approved cap of $329.17 per megawatt-day.
Including Fixed Resource Requirement (FRR) participants, the total secured capacity reached 146,244 MW UCAP—enough to meet forecasted peak demand plus reserve requirements. PJM emphasized that while capacity charges make up a relatively small portion of retail electricity bills, some customers could see price increases of 1.5% to 5%, depending on how wholesale costs are passed through by utilities and states.
The auction outcome marks the first year-over-year increase in new generation and uprates in four years, with 2,669 MW UCAP in added supply. Since PJM’s last auction in 2024, 17 units representing about 1,100 MW have reversed earlier retirement decisions, signaling renewed investment in grid capacity.
Still, the supply-demand balance remains tight. PJM’s cleared resources barely exceeded reliability requirements, with just 139 MW UCAP to spare. Resource mix breakdown includes 45% natural gas, 22% coal, 21% nuclear, and minimal shares from hydro (4%), wind (3%), and solar (1%).
PJM’s peak load forecast increased by more than 5,400 MW from the previous year, driven largely by growth in data centers, electrification trends, and broader economic activity. That demand growth, combined with a slow pace of new resource development, reinforces concerns about future grid reliability—an issue echoed by the North American Electric Reliability Corporation (NERC) nationwide.
The auction also reflected several key regulatory updates. These included expanded capacity offer obligations for all generation types, a newly implemented price floor and cap, and the retirement of the “Energy Efficiency” resource category. PJM submitted $0 offers for select Reliability Must-Run units, which will ensure grid stability and keep costs down, with credits to be passed back to load.
Meanwhile, PJM continues to push forward on interconnection reform. Under its FERC-approved queue overhaul, the organization has cleared over 60% of its transition backlog, with another 63,000 MW slated for review in 2025 and 2026. PJM is also working with Google to integrate AI and improve queue processing times, while urging regulatory coordination to address broader challenges such as permitting delays and supply chain constraints.
The next BRA, for the 2027/2028 Delivery Year, is scheduled for December 2025, as PJM aims to return to its original three-year-forward auction timeline.
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