PJM has released capacity prices for the 2026/2027 planning year, offering greater clarity on market pricing through May 2027.

Here are some key observations:

• The 2026/2027 BRA cleared uniformly at $329.17/MW-day across all LDAs, marking a substantial increase from the prior year’s $269.92/MW-day. Total cleared supply reached $16.1 billion, reflecting a 9.5% year-over-year increase driven by tighter capacity conditions.

• Including Fixed Resource Requirement (FRR) commitments, PJM procured a total of 146,243.8 MW UCAP—139 MW above the Reliability Requirement—indicating continued commitment to grid reliability amid growing demand forecasts.

• The clearing results reflect significant market changes, notably a higher Reliability Requirement and an increased Installed Reserve Margin (IRM) of 19.1%, combined with the introduction of VRR Curve price controls (cap and floor).

• A sensitivity analysis indicated that absent the price cap, clearing prices would have risen significantly to $388.57/MW-day, translating to an additional $2.9 billion in total market costs.