PJM 2028/2029 Base Residual Auction Clears at Price Cap
PJM 2028/2029 Base Residual Auction Clears at Price Cap
On July 14, 2026, PJM announced the results of its 2028/2029 Base Residual Auction (BRA), with the clearing price reaching the FERC approved price cap of $325/MW‑day across the RTO. In total, PJM procured 138,318 MW UCAP of generation and demand response resources through the auction with a resulting reserve margin of 14.7%, or 5.6% (6,831 MW) below PJM’s reliability requirement.
According to PJM simulation, without the price cap, the RTO-wide clearing price would have reached $554.72/MW-day, while the ComEd Locational Delivery Area (LDA) would have cleared at $776.69/MW-day.
The graph below shows the history of RTO clearing prices. The price cap and floor shown on the right side of the chart were negotiated for the 2026 /2027 and 2027/2028 auctions. The cap and floor were extended and will remain in place through the 2029/2030 BRA.
Reliability Backstop Auction
PJM has scheduled a special Reliability Backstop Auction (RBA) this coming September 2026. This is a one‑time emergency procurement accelerated by PJM to address data‑center‑driven load growth and near‑term reliability risks. The intent is to fill the gap between what cleared in the 2028/29 BRA, and 100% of PJM’s reliability requirement for the same delivery year.
Upcoming Auctions
PJM’s announced scheduled auctions are as follows:
ICAP versus UCAP
Understanding the difference between ICAP and UCAP is essential for interpreting auction results.
- ICAP (Installed Capacity) represents a unit’s nameplate or seasonal rated capability. It does not account for forced outage risk—essentially, “How much capacity does the unit have on paper?”
- UCAP (Unforced Capacity) adjusts ICAP for forced outage rates (EFORd). UCAP is the accredited capacity PJM counts toward reliability.
UCAP = ICAP x (1-EFORd)
PJM uses UCAP because it reflects the expected availability of a resource during system stress conditions. Two units with identical ICAP values may have very different UCAP values depending on their outage performance.
If you have questions about how any of this will affect your electricity bill or how you might manage your energy supply costs, please contact us.
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Posted in Electricity, Energy, Grid, PJM and tagged Electricity, Energy, Grid, PJM