Overview
- Monitoring Analytics reported wholesale prices in the 13‑state PJM grid averaged $136.53 per megawatt‑hour in the first quarter, up from $77.78 a year earlier.
- Capacity charges rose 398% in the quarter, and the monitor said the price hit to customers is large and not reversible unless the data‑center load issue is addressed quickly.
- PJM said the price rise reflects tighter supply and demand and outlined steps to blunt the impact on consumers, including a cap on future capacity prices through 2029, new transmission projects, and market‑rule changes.
- A recent PJM white paper warned the region could face a supply shortfall as early as next year as fast‑growing data‑center demand collides with plant retirements and delays in hooking up new generation.
- The monitor urged requiring data centers to provide on‑site generation and creating a queue that delays new data‑center hookups until enough capacity exists, while political pressure has mounted and utilities such as AEP and ComEd recalibrate their plans for customers.