Understanding PJM’s 2025 Capacity Rate Hike and What It Means for Your Business
In June 2025, commercial and industrial electricity customers across the PJM Interconnection region will begin to feel the effects of a significant capacity cost increase—one of the largest in recent memory. This price hike, the result of PJM’s most recent capacity auction, will dramatically raise costs that are embedded within electricity supply rates, particularly for businesses with less efficient load profiles.