2025 Energy Alert: PJM Market Prices Hit Record Highs
September 23, 2025
Electric Advisors, Inc. wants to help businesses understand rising utility costs
Who is PJM?
PJM, or Pennsylvania New Jersey Maryland Interconnection, is one of seven regional transmission organizations (RTOs) in the U.S. It manages the wholesale electricity market across 13 states and Washington, D.C., helping to keep power reliable and competitively priced across a large region.
Navigating Rising Capacity Costs in PJM
If you're a commercial electricity customer in the PJM region, here’s what’s new this month and why a long-term supply agreement has never been more important.
What’s Changed? Capacity Prices Spike Again
- In the latest auction, capacity prices for the 2026–2027 delivery year reached $329.17 per megawatt-day (MW-day)—the maximum allowed by federal regulators, a 22% increase over last year’s record high of $269.92/MW-day.
- PJM expects this spike to result in 1–5% higher bills for many ratepayers beginning June 2026, though impacts vary by state and cost recovery methods.
- Total capacity costs jumped from $14.7 billion in the prior year to $16.1 billion—an increase of more than $1 billion.
What’s Driving the Increase?
Energy-hungry data centers—especially those tied to AI and Big Tech—now account for over 90% of PJM’s rising power demand. By 2030, system demand is expected to grow by 32 GW, with 30 GW linked directly to data center expansion.
On the supply side, PJM remains heavily reliant on natural gas, coal, and nuclear, which together provide nearly 90% of generation. Renewables, including hydro, wind, and solar, make up just 8%. Adding to the challenge, PJM’s interconnection queue is clogged, particularly for clean energy projects. To address this, PJM has partnered with Google to use AI to accelerate approvals, with the goal of cutting timelines from more than 40 months down to just one to two years by 2026.
What It Means for Your Business
- Rising Costs Are Here: Many businesses are already facing a 1–5% cost increase in their electricity bills starting June 2026.
- Broader Impacts to Come: Analysts warn residential rates could climb 30%–60% by 2030 if demand keeps rising while new infrastructure lags.
The Smart Strategy: Lock in Long-Term Supply Agreements
Now is the ideal time to consider a long-term third-party energy supply contract. Here’s why it matters:
- Protect Your Budget: Locking in rates shields your business from volatile capacity price jumps.
- Plan with Confidence: Predictable energy pricing supports better budgeting and forecasting.
- Green and Flexible Options: Many contracts offer renewable energy choices or demand response options to reduce peak use and lower costs.
- Ride the Wave of Reform: With PJM investing in AI-powered interconnection and states negotiating reforms (e.g., PA’s new auction cap to avoid explosive cost spikes), now’s the time to benefit from market improvements.
Call to Action
At Electric Advisors, Inc., we help businesses navigate the rising costs in PJM’s electricity market. With demand growing rapidly and capacity prices climbing, it’s important to explore options that provide stability and cost control. A well-structured supply strategy can protect your budget and bring confidence in an uncertain market. Contact us to learn more about how we can support your energy planning.
Every golfer has a round they remember. It might be a personal best, a long putt that somehow found the cup, or a perfect drive down the middle of the fairway. For me, the most meaningful round has less to do with my score and more to do with the people gathered around the first tee. That round is the Purple Tee Classic. On Thursday, September 17, 2026 , Metro Bethesda Rotary will host the 20th Annual Purple Tee Classic at Whiskey Creek , with a 10:00 a.m. shotgun start. This will be my third year leading the tournament, and my final year in that leadership role. That makes this year especially meaningful to me. More Than a Golf Tournament The Purple Tee Classic is a day of golf, but it is really about much more than a day on the course. It brings together business owners, community members, Rotarians, friends, families, veterans, and first responders around a shared purpose. The fundraiser supports veterans and first responders, people who have served, protected, and supported our communities in ways most of us will never fully understand. Golf gives us the setting. Service gives the day its meaning. That is what I value most about Rotary. The organization creates opportunities for people to put relationships, resources, and time to work for something larger than themselves. The Rotary principle of “Service Above Self” is not just a phrase. It is something we are asked to live out by showing up, contributing, and following through. The Purple Tee Classic is one of the clearest examples of that principle in action. Why This Final Year Matters Leading a tournament like this takes more than setting a tee time and asking people to come out and play. It takes planning, coordination, communication, fundraising, and a team willing to handle the many details most participants will never see. That is one of the biggest things I want to say clearly this year: this event is absolutely a team effort. The Metro Bethesda Rotary members involved in this committee do a tremendous amount behind the scenes. They help plan, coordinate, communicate, recruit sponsors and players, and keep things moving in all the ways that make an event like this possible. A lot of that work is not flashy. It is steady, thoughtful, behind-the-scenes effort that helps turn a good idea into a real event that serves real people. I have been fortunate to work alongside fellow Rotary members who care deeply about Rotary’s mission and the causes the tournament supports. I am genuinely grateful for their time, commitment, and willingness to do the work that needs to get done. Events like this do not come together because of one person. They come together because a group of committed people keeps showing up and doing their part. It also takes the support of a broader community. Over the past three years, I have seen how a simple invitation, to play a round of golf or contribute an auction item, can become part of a much larger effort. As I prepare for my final year leading the Purple Tee, I am thinking less about the fact that my leadership role is ending and more about what I hope continues. I hope the tournament continues to bring people together. I hope new sponsors and players discover the value of supporting a community event with a clear purpose. And I hope every participant leaves Whiskey Creek remembering that the best part of the day was never just the golf. It was the difference we helped make by showing up. How You Can Help There are several ways to support this milestone event: Become a tournament sponsor. Help strengthen the event while putting your organization in front of an engaged local community. Register a foursome . Bring colleagues, friends, clients, or family members for a meaningful day on the course. Sponsor a veteran or first responder. Help someone enjoy a round of golf and participate in the Purple Tee experience. Donate an item or experience. Raffle and auction contributions add energy to the day and help expand the event’s fundraising potential. Every form of participation matters. Not everyone can sponsor at the same level, and not everyone plays golf. But everyone can consider whether they, or someone they know, might be able to help. Key Takeaways The 20th Annual Purple Tee Classic will take place at Whiskey Creek on September 17, 2026. This is my third year leading the tournament and my final year in that leadership role. The fundraiser supports veterans and first responders. Sponsors, foursomes, individual player support, and donated auction or raffle items are all important. Rotary has given me the opportunity to serve with people who care about their community and are willing to turn good intentions into action. I am grateful for that opportunity, grateful for the people I get to work alongside, and determined to make this final year leading the Purple Tee Classic a memorable one. If you would like to support the event, please visit purpletee.fundraiser.bid . You can also message me directly if you are interested or know someone who may want to help. One last round in this leadership role. One more opportunity to bring people together. And one more chance to support the veterans and first responders who deserve our gratitude.
Your guide to Energy Incentives for Maryland is here
For most business owners, the monthly utility bill is just another line item to be paid and filed away. You glance at the total, ensure it isn't astronomically higher than last month, and move on. But in 2026, with energy markets facing unprecedented volatility and complex new tariff structures, that "glance and pay" strategy is costing American businesses billions in overpayments. The good news? You don’t have to just accept these costs as the price of doing business. Everyone is talking about utility bill audits because they have transitioned from a "nice-to-have" occasional check to a critical financial strategy. At Electric Advisors, Inc., we’ve seen firsthand how a meticulous review of historical invoices can uncover significant refunds and permanent rate reductions.