PJM’s 2027 2028 capacity auction cleared at the FERC cap of about $333.44 per MW day yet still missed reliability targets. The auction procured 6,623 MW less than required, with the reserve margin clearing 14.8% versus PJM’s stated 20% target. More than 5,000 MW of incremental load growth tied to data centers drove the gap as new firm supply lagged. Clearing at the cap with a lower reserve margin is a clear reliability miss and it puts a bullish tint under forward power prices for 2027 and beyond by establishing a durable floor as markets price tighter buffers and rising adequacy risk.

Active Load Management Offsets Rising Capacity Costs

Increasing capacity costs can be mitigated through EnerNova’s unique demand response partnership and our highly successful proprietary demand reduction program. Demand response and peak load curtailment directly reduce capacity cost, which can make up over 30% of total electricity costs.