PJMs Capacity Auction: A Looming $17 Billion Bill for ConsumersThe upcoming PJM Interconnection capacity auction is causing a stir, with predictions of a record-breaking $17 billion payout to power generators. This surge is largely due to the booming data center industry, which is adding billions to household utility bills. The auction, while just one part of electricity expenses, is growing the fastest due to skyrocketing demand from artificial intelligence. Data center electricity consumption accounted for 45% of the last auctions price tag. Critics like Marylands Peoples Counsel, David Lapp, argue that the capacity market is punishing customers and creating a windfall for generators. Despite a price cap negotiated last year, analysts expect prices to hit the ceiling of $333.44 per megawatt per day, an all-time high. If the price cap isnt extended, future auction costs could surge even further, benefiting independent power producers like Constellation Energy and Vistra Corp.

The Daily News Now! — Every city. Every story. AI-powered.

---

Hosted on Acast. See acast.com/privacy for more information.