Power auction results will indicate 2028 electricity cost trends

The regional power grid manager, PJM, recently announced the results of its latest capacity auction, which will determine a portion of Pennsylvania's electricity costs beginning in 2028. Energy experts and consumer advocates, including Patrick Cicero of the Pennsylvania Utility Law Project, warned that persistently high auction prices could increase household electric bills due to rapidly expanding data center demand outstripping new power supply development. Cicero estimated that recent capacity price increases have already cost the average Pennsylvania residential customer an additional $220 to $320 annually, totaling approximately $1.2 billion over the past 18 months across the state, with data center load growth being the "overwhelming driver."

Robert Routh, Pennsylvania policy director for climate and energy at the Natural Resources Defense Council, predicted the auction would again reach the price ceiling, negotiated by Gov. Josh Shapiro and PJM and extended by the Federal Energy Regulatory Commission. While the cap has prevented further cost increases, advocates like Elowyn Corby of Vote Solar view it as a temporary consumer protection rather than a long-term solution to grid imbalance.

Advocates proposed reforms such as a "reliability backstop" requiring large data centers to support new power generation or storage, and mandating that data centers bring their own capacity to avoid increasing prices for all customers. They also called for stricter scrutiny of electricity demand forecasts to prevent speculative projects from inflating projections. However, Senate President Pro Tempore Kim Ward argued the PJM-wide price cap disadvantages Pennsylvania, a major electricity exporter, by shifting costs from states favoring alternative energy sources onto Pennsylvania ratepayers.