PJM Interconnection’s 2026/2027 Base Residual Auction (BRA) secured 134,311 MW of unforced capacity (UCAP) from generation and demand response resources to meet the projected electricity needs of over 67 million people. An additional 11,933 MW was acquired through the Fixed Resource Requirement, bringing the total available capacity to 146,244 MW. The clearing price came in at the Federal Energy Regulatory Commission (FERC)-approved cap of $329.17 per MW-day across the entire PJM footprint, a 21% increase from the previous year’s $269.92 per MW-day, intensifying concerns in states considering reforms or exiting PJM due to already high 2025–26 prices. While this could lead to a 1.5% to 5% increase in retail electricity bills for some customers, the price decrease in a few zones could translate into lower bills in those areas. In contrast, the DOM zone saw a price drop to $329.17/MW-day from $432.48/MW-day the previous year.
The auction results show that supply is beginning to respond to stronger investment signals. Notably, 2,669 MW of new or upgraded generation resources cleared the auction — marking the first such increase in four years. Since the last auction’s results were posted in July 2024, 17 generating units representing around 1,100 MW reversed their retirement plans. PJM also reported significant interest in its Reliability Resource Initiative, with over 11,000 MW of new and upgraded capacity (measured in installed capacity, or ICAP) proposed by investors.
Electricity demand continues to rise, with PJM forecasting a year-over-year increase of more than 5,400 MW in peak load, driven by data center expansion, electrification, and economic growth. The cleared capacity exceeded the region’s reliability requirement by just 139 MW UCAP, underscoring how tight the supply-demand balance has become. The fuel mix for cleared resources included 45% natural gas, 22% coal, 21% nuclear, 4% hydro, 3% wind, and 1% solar.
Several recent market rule changes were incorporated into the auction. These included expanded capacity must-offer requirements for all resource types, new FERC-approved price caps and floors, the retirement of the energy efficiency product category, and PJM’s submission of $0 offers for certain Reliability Must-Run units to manage reliability and cost impacts. PJM continues to enhance its interconnection process to bring new resources online more quickly. Over 60% of its transition backlog has already been processed, with approximately 63,000 MW of capacity set for review in 2025 and 2026. Although more than 46,000 MW of approved capacity remains unbuilt, the delays are largely due to challenges outside PJM’s control, such as permitting, supply chains, and shifting project economics.
Looking ahead, PJM plans to resume its three-year-forward auction cycle with the next Base Residual Auction for the 2027/2028 delivery year, scheduled for December 2025. The organization remains focused on maintaining a transparent market, accelerating the interconnection process, and supporting solutions that will help bring needed capacity online to maintain reliability in a rapidly evolving energy landscape.