Story perspectives

PJM Auction Hits Record Prices Amid Reliability Crisis

12/20/2025

Summary

Story summary

In its latest capacity auction, PJM Interconnection reached record-high prices but failed to meet its reliability target, risking blackouts starting June 2027.
Demand from data centers is driving the shortfall for the mid-Atlantic grid.
Rising costs have already affected consumer bills and prompted urgent reforms to ensure affordability and reliability.
Experts warn that continued demand from data centers could lead to significant electricity shortages.

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Story summary

In its latest capacity auction, PJM Interconnection reached record-high prices but failed to meet its reliability target, risking blackouts starting June 2027.
Demand from data centers is driving the shortfall for the mid-Atlantic grid.
Rising costs have already affected consumer bills and prompted urgent reforms to ensure affordability and reliability.
Experts warn that continued demand from data centers could lead to significant electricity shortages.