Overview
- PJM’s 2028/2029 Base Residual Auction, which released results Tuesday, cleared 138,318 MW of unforced capacity (UCAP) at the FERC‑approved cap of $325 per megawatt‑day and produced $16.4 billion in cleared value.
- The procured capacity plus FRR commitments is roughly 6,831 MW below PJM’s one‑in‑10‑year reliability requirement, leaving the grid with slimmer reserves and higher risk during peak events.
- Independent monitors and advocates say concentrated data center growth is the main driver of rising demand and costs, with Monitoring Analytics estimating about $6.3 billion of the latest auction’s cost is linked to new data center load.
- Consumer groups and state officials say higher capacity costs are already boosting household bills in places like Pennsylvania by an estimated $220 to $320 per year, and political pressure is building for load‑specific rules.
- To address the gap PJM plans to file with FERC for a September Reliability Backstop and is proposing faster interconnection tracks, a 'Connect and Manage' framework, and facilitation of long‑term bilateral contracts to speed new supply.