PJM Interconnection extends capacity auction price cap for two years to lower energy costs
PJM agreed to extend price caps following legal action by Pennsylvania. The move is expected to save 67 million customers about 27 billion dollars on bills.
PJM Interconnection announced on February 12, 2026, that it has agreed to extend a price cap on its capacity auctions for another two years. This decision follows legal action initiated by the State of Pennsylvania and is expected to result in significant savings for consumers across the regional grid in the US 
US. According to the announcement, the extension will save roughly 67 million Americans about $27 billion on their energy bills, bringing the total estimated savings for PJM customers to about $45 billion.
US. According to the announcement, the extension will save roughly 67 million Americans about $27 billion on their energy bills, bringing the total estimated savings for PJM customers to about $45 billion.The move alters the price constraint on PJM’s capacity procurement mechanism across its multi-state grid. This change directly affects costs for customers within the regional footprint, which is defined as PJM’s 13-state footprint. The extension was prompted by recent legal challenges from the State of Pennsylvania, with officials such as Josh Shapiro involved in the efforts to secure lower rates for ratepayers.
