Columbus and Franklin County are in AEP Ohio territory. The 2025 PJM capacity auction cleared at $269 per MW-day — the highest in a decade. That clearing price flows into AEP Ohio supply rates starting with the June 2026 billing cycle. The capacity component of the typical Columbus residential bill rises by $8 to $14 a month. Locking a supplier contract before June captures the pre-auction price; staying on AEP SSO absorbs the auction result directly.
How the PJM Base Residual Auction works
PJM runs the Base Residual Auction each May/June to procure capacity for the delivery year starting the following June 1. Generators bid in their capacity (in MW); PJM clears the auction at a single $/MW-day price.
The cleared price flows into utility procurement costs and then into retail tariffs filed with state PUCs. The lag from auction clear to retail rate change is roughly 12 to 18 months.
The $269 per MW-day clear and what it means
The 2025 auction cleared at $269 per MW-day, the highest in a decade. The driver was retiring coal generation, slow renewable integration, and growing data-center demand.
For Columbus AEP customers, the auction result adds roughly $8 to $14 a month to the capacity component of the residential bill starting June 2026. The increase is regulated and identical across all suppliers in AEP territory.
Why locking before June matters
Locking a supplier rate before the June 2026 effective date captures the pre-auction price on the supply portion. The capacity portion still moves with the regulated tariff, but the supply portion stays at the locked rate.
Households on AEP SSO absorb both moves. The locked-vs-SSO gap typically widens by 1.5 to 2.4 cents per kWh after a high-clearing capacity auction.
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