If you live or do business in states like Ohio, Pennsylvania, Illinois, or New Jersey, there’s something big happening behind the scenes that could hit your wallet in 2026. It’s tied to something called the “PJM Capacity Auction,” and while it sounds like industry jargon, the impact is real: your electricity bill could go up—and stay up—for years.

Let’s break it down in plain English.

What Just Happened?

PJM is the organization that manages the electric grid for 13 states and Washington, D.C. Every year, they hold something called a “capacity auction.” It’s basically how they make sure there’s enough electricity available for the future—even on the hottest summer day or the coldest winter night.

This July, the results came in for the 2026–2027 period—and the price hit the maximum legal limit.

That’s a red flag for anyone who uses electricity (which is… all of us).

What Does That Mean for You?

When the cost to secure electricity supply goes up, so does the price you pay—especially for commercial and industrial customers. Here’s how it could affect your business or household:

• Higher Electric Bills: You might see increases of 1.5% to 5% (or more) depending on your provider and usage. For larger businesses, this could mean thousands in added costs.
• Contract Surprises: If you’re locked into a short-term electricity contract or haven’t reviewed your rates recently, these higher capacity prices could hit you when it’s time to renew.
• Fewer Options Later: The longer you wait to act, the fewer cost-saving options may be available—because energy suppliers are already pricing these changes into future offers.

Why Is This Happening?

A few reasons are driving this increase:

• Energy Demand is Exploding: Thanks to things like AI, data centers, and electric vehicles, we’re using more electricity than ever before. The system is under pressure.
• Clean Energy Delays: Even though lots of solar and wind projects are planned, many are delayed due to red tape. That means we’re still relying on older, more expensive power plants.
• Not Enough Supply: Some power plants are shutting down, and new ones aren’t being built fast enough to keep up.

Why Should You Care?

Because what happens today affects your rates tomorrow. Whether you run a coffee shop, manage an apartment complex, operate a factory—or just pay the bills at home—these energy market shifts will hit your budget.

And here’s the good news: you don’t have to be caught off guard.

What Can You Do Right Now?

1. Review Your Contract – Do you know when your current electricity deal ends? If it’s before mid-2026, you might want to explore new options now.
2. Shop Around Early – There are more than 90 suppliers in the market. Locking in a rate before prices spike further could save you money.
3. Ask About Demand Response or Peak Load Plans – Some programs let you reduce usage at certain times in exchange for lower costs.
4. Talk to an Energy Advisor – You don’t have to figure this out alone. We’ll explain your options, help you compare offers, and even handle supplier negotiations for you.

The Bottom Line

Energy costs are going up—and the signals from the PJM auction confirm it. But with the right strategy, you can take control before it becomes a financial burden.

Let’s make sure you’re protected. Whether you’re managing energy for one building or multiple sites, our team is here to help. We’ll review your current setup, explain what’s changing in your market, and find the best strategy to keep your costs down.

Get a free, no-obligation review of your energy contract today. Contact us now to get started.