Federal Energy Regulatory Commission Approves Extension Of PJM Capacity Auction Price Cap, Floor For Next 2 Auctions

On April 30, the PJM Interconnection announced the Federal Energy Regulatory Commission has accepted PJM’s proposal to extend the existing price collar used in the two most recent capacity auctions for two more future delivery years.

FERC’s April 28 approval of the PJM proposal will limit auction wholesale price outcomes at a price cap of approximately $325/MW-day and a price floor of $175/MW-day. 

That price framework will apply to the upcoming auction closing July 7 to procure resources for the 2028/2029 Delivery Year and the auction closing Dec. 15 to procure resources for the 2029/2030 Delivery Year.

The price collar was also applied to prior auctions for the 2026/2027 and 2027/2028 delivery years.

The PJM proposal to maintain the price collar for the 2028/2029 and 2029/2030 delivery years was also supported by a coalition of all 13 governors, the White House National Energy Dominance Council and the U.S. Department of Energy.

FERC signaled in its order that “these circumstances support the continued application of a time-limited price collar to narrow the range of potential price outcomes, which will reasonably address concerns about excessive price volatility.”

Click Here for the PJM announcement.

The PJM Interconnection coordinates the wholesale electricity grid and markets for all or parts of 13 states—Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia—plus the District of Columbia.

Related Articles This Week:

-- PUC Adopts Voluntary Large Load, Data Center Tariff Framework To Help Protect Ratepayers   [PaEN]

-- Federal Energy Regulatory Commission Approves Extension Of PJM Capacity Auction Price Cap, Floor For Next 2 Auctions  [PaEN] 

-- Senate Committee Hears Electric Grid Issues Getting Worse; PJM Has Attracted 220 GW Of New Generation Proposals; PJM ‘Backstop’ Procurement Critical To Making Data Centers Pay For New Generation [PaEN] 

-- House Energy Committee Sets May 4 Meeting To Act On More Bills To Address Electric Grid Reliability, Affordability Issues: Authorize Virtual Power Plants, Update Net Metering, More  [PaEN]

-- PA House Passes Bill To Require A.I. Data Centers To Report Water Use, Discharges To DEP  [PaEN]

-- Gov. Shapiro Announces $267 Million Investment In 31 PA Industry Projects To Reduce Air Pollution, Cut Energy Costs, Create Jobs, And Combat Greenhouse Gas Emissions In 23 Counties; Next Grant Round Opens May 15  [PaEN] 

-- Environmental Health Project Calls On Gov. Shapiro To Address Health Hazards Of Fossil Fuels  [PaEN] 

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-- Gov. Shapiro Appoints Mark Szybist New Special Counsel For Energy Affordability  [PaEN] 

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NewsClips:

-- Post-Gazette - Anya Litvak: PA DEP Industrial Decarbonization Program RISE PA Doles Out First Large Grants

-- Pittsburgh Business Times: CNX Green Ventures LLC Received $31.5 Million RISE PA Decarbonization Grant For Coal Mine Methane Recovery, Largest State Grant 

-- PJM Interconnection: 220 GW Of New Power Generation Project Proposals Submitted To Connect To The Grid Under New Process 

-- Reuters: PJM Grid Operator To Begin Processing 220 GW Of New Generation Project Proposals

-- Utility Dive: 106 GW Of Natural Gas-Fired Generation Leads PJM’s Newly Reopened Interconnection Queue; A.I.-Enabled Google Tapestry Will Be Used To Review The Applications 

-- Utility Dive Guest Essay: In 2025, PJM Energy Capacity Costs Were Up 300%, Congestion Costs Up Almost 80%, Total System Costs Up Over 50% - Massive Demand Shock Is Here - By Shahid Mahdi, EnerKnol 

-- Scranton Times: Dedicated Eynon Jermyn Road A.I. Data Center Power Plant Proposal Scrutinized In Archbald

-- WNEP: Archbald’s Energy Debate Heats Up At Conditional Hearing For Proposed, Dedicated A.I. Data Center Power Plant

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-- ABC27: A.I. Data Centers Dominate Statewide Township Leaders Convention 

-- Wilkes-Barre Times Leader Guest Essay: Public Backlash Against A.I. Data Centers Creating A Buildability Crisis - By Peter Clark, InsideSources.com 

-- PA Capital-Star: Electricity Grid Maps Could Speed Addition Of Renewable Energy To PA, PA House Panel Hears

-- City & State PA Guest Essay: Choosing Electric, Natural Gas Suppliers Works For Pennsylvanians, Don’t Let New House Bill Take It Away [House Bill 2131 (Boyd-D-Delaware)] - By John Hanger, Former PUC Commissioner 

-- Utility Dive: NYISO Grid Operator Says Extended Heat Wave Could Cripple New York’s Grid This Summer; Reliability Margins Will Be Lowest In Recent History  

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-- Utility Dive: PA Cong. Brian Fitzpatrick, Other Republican Members Of Congress Introduced Bill To Restore Renewable Energy Production, Investment Tax Credits For Much-Needed Generation Capacity 

-- Reuters: US Consumers Face Rising Electricity Prices Pushed By A.I. Data Center Demand, Rising Natural Gas Prices, Tariffs On Steel/Aluminum, While Benefits From Low-Cost Clean Power Capacity Emerge 

-- Financial Times: BP Warns Against Windfall Taxes As Iran War Helps Profits Hit 3-Year High

[Posted: April 30, 2026] PA Environment Digest