PJM Interconnection to release capacity auction results soon. How much will electricity rates go up?

PJM Interconnection, the regional power grid operator for Pennsylvania and 12 other states, is set to release new information on electricity rates on Tuesday.

Energy and consumer advocacy experts gave a preview Monday on what to anticipate when PJM Interconnection releases its capacity auction results for the 2028-29 delivery year on Tuesday. PJM Interconnection is the manager of the electrical grid for Pennsylvania and 12 other states.

"Given all the dynamics, the price is certainly going to land at the cap, very near at the cap, which is around $325 a megawatt day," Patrick Cicero, with the Pennsylvania Utility Law Project, told KDKA-TV on Monday. 

He said that's basically the same as the last two auctions, for our current delivery year and the next, each totaling about $16 billion in costs for what are considered promises for availability when there's excessive demand on the system, like during heat waves. What Cicero said they've been seeing for the last 18 months or so is what these predicted results could mean for you.

"Utilities have increased their prices that people pay who are on default service a couple of times," Cicero said.

The project found that during this time, the average household in Pennsylvania has seen an increase of $220 to $320 a year on their bill. This is $1.2 billion more in total for all households.

They said the overwhelming reason is because of the load growth of data centers, not even those built yet, but the projections of them coming to the area.

"Data center load growth is degrading grid reliability, and it's raising prices to the Gov. [Josh] Shapiro negotiated cap," said Robert Routh, the Pennsylvania policy director for the Natural Resources Defense Council.

Routh said because of that cap, PJM found nearly $13 billion was saved in the last two auctions, and that cap is now extended at least for power through 2030.

Advocates agree that a new proposal from PJM members requiring these centers to pay for their own new power supply, which still needs board approval, could also help, but they said more needs to be done.

The PJM auction results are expected to come out around 4 p.m. EST on Tuesday.