The Federal Energy Regulatory Commission has accepted PJM’s proposal to extend the existing price collar used in the two most recent capacity auctions for two more future delivery years.
FERC’s April 28 approval of the PJM proposal will limit auction wholesale price outcomes at a price cap of approximately $325/MW-day and a price floor of $175/MW-day.
That price framework will apply to the upcoming auction closing July 7 to procure resources for the 2028/2029 Delivery Year and the auction closing Dec. 15 to procure resources for the 2029/2030 Delivery Year.The price collar was also applied to prior auctions for the 2026/2027 and 2027/2028 delivery years.
The extension of the price collar is part of a comprehensive set of reforms directed by the PJM Board of Managers to address the electricity supply-demand imbalance driven by rapid data center expansion, PJM said.
The PJM proposal to maintain the price collar for the 2028/2029 and 2029/2030 delivery years was supported in principle by a coalition of all 13 governors, the White House National Energy Dominance Council and the U.S. Department of Energy.
"The price collar filing is just one of multiple efforts underway at PJM to manage the addition of new electricity demand without undue burden to consumers in terms of cost and reliability of the electrical grid," PJM said.
FERC signaled in its order that “these circumstances support the continued application of a time-limited price collar to narrow the range of potential price outcomes, which will reasonably address concerns about excessive price volatility.”
