The capacity auction for 2026-2027, which greatly affects electricity prices, has happened. The results were published on July 22. Here’s a quick breakdown of what occurred.
Introduction
As a quick reminder, capacity refers to the amount of electricity a generator can produce when it’s running at its full capability. This maximum amount of power is typically measured in megawatts (MW) or kilowatts and helps utilities project just how big of an electricity load a generator can handle. Electric customers are charged for capacity, in their electricity bills.
In Illinois, capacity is typically 20-25% of an electric bill.
PJM controls the transmission of wholesale electricity to thirteen states, including Illinois.
Last year, in July, the capacity price rose by 800%. This was due to the great demand that data centers have placed upon the power grid and the inadequate resources the infrastructure has to support this demand. You can read more about last year’s capacity auction and the reasons for the price surge here.
This caused prices for June 2025-2026 to rise exponentially. In May 2025, the ComEd price was .069. In June 2025, when the new capacity price kicked in, the base ComEd price jumped to .1013.
This has caused both residential and commercial electric bills to skyrocket. See here
With the rising costs of groceries, clothing, and now electricity prices, consumers can’t seem to catch a break. The foreseeable future does not look much better.
2026-2027 Capacity Auction Results
In mid-July, the PJM capacity auction was held, to determine the 2026-2027 capacity price. This year, due to the disastrous capacity auction of 2024, a cap was set for this year’s price at $329.
The capacity price reached the cap ceiling. Essentially, capacity prices will rise about 22% for the 2026-2027 year.
The next capacity auction for 2027/2028 is scheduled for December 2025.
What does this mean for me and my business?
Higher electricity prices. With the increase in capacity, prices, here in Illinois, could be anywhere from 12-16 cents, in the worst case scenario.
These next two years, in the Illinois electricity market, will be rough. There’s no getting around it. If you own a commercial business, it is imperative to secure a fixed price plan, to help protect your business against these increased costs.
We’ve helped businesses, here in Illinois, save money on their electric bills since 1991. We’re here to help your business continue to thrive, despite the turbulent economic times.
Contact us today via phone, email sales@lbeltd.com, or the form on our website, to discuss your account and help secure a competitive rate.
[1] https://www.pjm.com/-/media/DotCom/markets-ops/rpm/rpm-auction-info/2026-2027/2026-2027-bra-report.pdf
