PJM 2026/2027 Capacity Auction: Higher Prices, but Less Sticker Shock

Report Summary:

PJM's 2026/2027 Base Residual Auction (BRA) cleared even higher than the previous explosive auction, climbing from $269.92/MW-day to $329.17/MW-day. While certainly higher, known reforms and supply/demand fundamentals made this a more expected outcome. This report dives into the cause of the high price regime the auction currently lives in as well as what to expect in and outside the market in the future.