PJM Capacity Rate Increase: Energy Advisor Offers Business Guidance for 2027

A New Jersey energy advisor is guiding commercial and industrial businesses through the ongoing implications of PJM’s 833% capacity rate increase, as three consecutive auctions have cleared at federal price caps, keeping peak capacity costs high through May 2029.

Bayonne, United States, November 15, 2026 /NewsNetwork/ -- Commercial and industrial businesses across the PJM region are now in their second year of sharply higher capacity charges, and recent auction results suggest those costs will not ease soon. The Energy Consultant NJ, run by independent energy consultant Mike O’Reilly, is helping businesses in New Jersey and other PJM states understand what this means for their electricity budgets.

Further details can be found at https://theenergyconsultantnj.com

The rise began with PJM’s capacity auction for the 2025/2026 delivery year, which cleared at $269.92 per megawatt-day, up from about $29. That 833% increase reached business electricity bills on June 1, 2025, and prices have climbed since then. The 2026/2027 auction, which took effect on June 1, 2026, cleared at $329.17 per megawatt-day. The next two auctions also cleared at a price cap approved by federal regulators: $333.44 for 2027/2028 and $325 for 2028/2029.

The July 2026 auction also fell about 6,831 megawatts short of PJM’s reliability requirement, the second shortfall in a row. PJM’s own simulation found that without the cap, prices would have reached about $555 per megawatt-day.

Capacity charges, often called peak capacity costs, are linked to a business’s peak load contribution, which is based on its electricity use during the grid’s highest-demand hours. According to The Energy Consultant NJ, these charges can add 1 to 4 cents per kilowatt-hour and make up roughly 20% to 30% of a monthly bill.

“Our goal is to really provide clear insights and practical strategies that are going to help protect your bottom line,” said O’Reilly.

O’Reilly works with businesses through the MIS Method, a three-step process: a business registers, uploads an electricity bill, and then compares price and term options from several energy suppliers. The firm also runs a peak notification program that alerts customers to likely peak demand days, allowing them to reduce usage during those hours and lower future capacity charges.

About The Energy Consultant NJ

The Energy Consultant NJ is run by Mike O’Reilly, an independent consultant for Mantis Innovations. The firm helps commercial and industrial businesses in deregulated energy markets review electricity costs, compare supplier offers and manage peak capacity charges.

Businesses can learn more or request an energy analysis at https://theenergyconsultantnj.com

Contact Info:
Name: Michael O'Reilly
Email: Send Email
Organization: The Energy Consultant NJ
Address: 104 W 16th St, Bayonne, NJ 07002, United States
Phone: +1-201-892-2587
Website: https://theenergyconsultantnj.com

Source: NewsNetwork

Release ID: 89209693

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