PEG · 10-Q · 2026Q2 · Full report

Capacity Market and Load Growth

PUBLIC SERVICE ENTERPRISE GROUP INC · 2026-08-04 · Importance 65 · Surprise 82 · In source text

PSEG reports increasing power demand and insufficient new generation resources in PJM and New Jersey, creating resource-adequacy concerns and higher electricity costs. PJM capacity-auction prices in July 2024 were approximately 10 times those in 2023, while July 2025 prices were higher again despite a FERC-approved price ceiling. PJM is pursuing a Reliability Backstop Procurement framework to obtain 15-year commitments from new eligible generation resources for the 2028/2029 reliability shortfall. FERC is also developing rules for large-load connections, including how PJM will study co-location requests and allocate transmission costs.

Key facts

• PJM is targeting a Reliability Backstop Auction for September 2026 following FERC approval of needed rule changes and under a July 2026 filing intends to secure 15-year commitments from new eligible generation resources to match the shortfall for the 2028/2029 delivery year, asking FERC to approve an effective date of September 29, 2026 to commence procurement on September 30, 2026. source
• Prices from the July 2024 PJM annual capacity market auction were approximately 10 times higher than prices from the 2023 auction. source
• In February 2026, PJM filed with FERC a proposal to extend the price cap for another two delivery years (2028/29 and 2029/30) and in April 2026 FERC issued an order accepting PJM’s proposal. source
• Prices from the July 2025 capacity market auction were higher than the July 2024 auction and PJM indicated prices would have been even higher if not for a FERC-approved ceiling which remained in effect for the December 2025 auction. source

Impact estimates