PJM announced it will seek to establish a $325/MW-day price cap on capacity prices and a $175/MW-day floor for the 2026/27 and 2027/28 Base Residual Auctions following discussions with Pennsylvania Gov. Josh Shapiro to resolve a complaint he filed over increased capacity costs.

Pennsylvania Gov. Josh Shapiro urged PJM Chair Mark Takahashi to “intervene with” RTO leadership to revise the design of the capacity market before conducting the 2026/27 BRA to avoid an “unacceptable” increase in capacity market prices.

Pennsylvania Gov. Josh Shapiro filed a complaint with FERC on behalf of the state asking the commission to revise how the maximum clearing price in PJM's capacity auction is determined.

Several state consumer advocates filed a complaint at FERC alleging PJM’s capacity market is failing to mitigate market power, overestimating future load and producing high clearing prices that generation owners cannot act on. 

Panels during the OPSI Annual Meeting discussed the 2025/26 capacity auction yielding an eightfold jump in prices, as well as possible changes to the subsequent auction.

The second leg of the Independent Market Monitor's analysis on PJM's 2025/26 Base Residual Auction looked at the impact of not counting reliability-must-run resources as capacity, paired with several other factors.

The Market Implementation Committee rejected a PJM issue charge that envisioned adding notice that Base Residual Auction rules are subject to change, with two-thirds of stakeholders opposed.