PJM Auction Signals $777 Illinois Capacity Costs as Clean-Energy Law Tightens Power Supply
Updated
Updated · Chicago Tribune · Aug 4
PJM Auction Signals $777 Illinois Capacity Costs as Clean-Energy Law Tightens Power Supply
2 articles · Updated · Chicago Tribune · Aug 4
Summary
Nearly $777 per megawatt-day was the uncapped capacity price indicated for ComEd territory in PJM’s latest auction for 2028-29, more than double the $325 cap and well above roughly $555 elsewhere in PJM.
ComEd said that uncapped price would have added $35 to $77 a month for single-family homes and $17 to $38 for apartments starting in mid-2028, though the cap is currently holding bills near today’s level.
Joseph Bowring, PJM’s independent market monitor, tied Illinois’ outlier pricing to the 2021 Climate and Equitable Jobs Act, which pushes fossil-fuel retirements by 2045 and raises the risk and cost of building new gas plants.
20,919 megawatts cleared in ComEd territory for 2028-29 against about 22,000 megawatts of peak demand, down from 25,152 megawatts in the comparable 2024-25 period, leaving northern Illinois increasingly reliant on imported power.
The capped auction outcome eases near-term bill shock but points to a broader reliability risk across PJM, as constrained price signals may discourage new supply and increase the chance of shortages during extreme weather.