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PJM capacity auction 2026 results — commercial impact

Commercial

PJM cleared $269 per MW-day for 2025-26. The bill increase by load profile, by state, and the 90-day window to lock before Q3 retail rate updates.

Harry Parker

Energy Consultant, Seenra Inc

Commercial10 min readPublished

Featured infographic

PJM 2025 auction-to-commercial-bill flow

May/June 2025 auction → Q3 2025 retail update → commercial bills rise 4 to 14 percent. Impact varies by load factor.

Open graph image · /og/capacity-stack.png

The 2025 PJM capacity auction cleared at $269 per MW-day — the highest in a decade. Commercial bills feel the impact starting Q3 2025 retail rate updates. Bill impact varies by load profile: high-load-factor commercial customers see 4 to 8 percent total bill increase; low-load-factor customers see 8 to 14 percent. The 90-day lock window before Q3 captures pre-auction supplier pricing.

Bill impact by commercial load profile

High-load-factor commercial customers (data centers, hospitals, 24/7 manufacturing) see roughly 4 to 8 percent total bill increase. Capacity is allocated by coincident peak demand, which is similar to average.

Low-load-factor commercial customers (retail, schools, offices) see 8 to 14 percent because the capacity allocation is based on peak demand, which is much higher than their average draw.

The 90-day lock window before Q3

Suppliers price commercial offers based on their own capacity hedging. Before Q3 retail updates, suppliers are pricing against pre-auction forward curves and can lock customers at lower capacity components.

After Q3, suppliers reprice to reflect the cleared capacity result. The 90-day window before Q3 captures the pre-update pricing for 24-month forward contracts.

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Common questions

Quick answers from the editorial desk

When does the 2025 capacity hit commercial bills?
Q3 2025 retail updates for most PJM-state commercial customers. Specific timing varies by utility tariff cycle. Customer-coincident-peak allocation can lag the auction by 6 to 12 months.
Can I negotiate around the capacity charge?
No. Capacity is a regulated charge set by the wholesale auction and utility tariff. Suppliers cannot price below the regulated capacity component.
What about capacity tag for new commercial sites?
New sites get a temporary capacity tag based on connection size until 12 months of coincident-peak data accumulates. The tag adjusts at the first annual reset.
Can I hedge against future capacity auction spikes?
Partial hedging is available via 24 to 36 month locked contracts that capture pre-auction supplier pricing. No way to fully avoid the regulated capacity charge.

Further reading

Pillar guide, cluster siblings, and state pages cited above

Sources

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