If your business operates in one of PJM’s 13 northeastern states, brace for impact. A historic 833% spike in capacity charges is set to hit commercial electricity bills starting June 2025. Here’s what’s driving the surge—and how smart companies are preparing.
You know that moment when you open a utility bill and feel your stomach drop? That's about to become a regular occurrence for many businesses in the Northeast.
Starting June 2025, —the fees tied to keeping enough energy supply available—are expected to increase by 833% across the PJM grid. If that sounds dramatic, it is. The hike could raise overall electricity costs for commercial users by 15% to 25%, just as summer demand peaks.
And no, this isn't just inflation. It's the result of specific—and troubling—market changes.
PJM Interconnection, which coordinates the electricity grid across 13 states and Washington D.C., recently released its capacity auction results for the 2025/2026 delivery year. The numbers are eye-watering: rates are jumping from $28.92 to $269.92 per megawatt-day.
Here's what's fueling the surge:
This is the largest such spike in PJM history—and it's not just theoretical. These costs will be passed along to consumers, many of whom won't realize until the bills start landing in their inboxes.
In deregulated states, energy bills are split into two parts: supply (the electricity you buy) and delivery (the infrastructure that gets it to you). Many business owners don't realize they can , even though it could save them thousands.
Professional energy consultants often help clients lock in better rates, find overlooked inefficiencies, and even negotiate contracts that sidestep volatile price jumps. With the 2025 rate hike looming, that kind of support could make a serious difference.
Some companies are already taking action. According to energy procurement experts, the key lies in contract timing and supplier competition—two things that aren't easy to handle without help.
Firms that specialize in commercial energy strategy use tools like usage pattern analysis and supplier networks to secure more favorable rates ahead of market spikes. One such firm——has reported success helping clients—including tech giants and national nonprofits—soften the impact of capacity increases through targeted procurement and timing strategies.
If your business operates in the PJM region, this capacity spike isn't something you can ignore. But it is something you can prepare for—especially if you get ahead of it now.
Consider getting a professional energy analysis to see how much of the upcoming increase could be offset. All it usually takes is basic company info and a recent electricity bill to get started.
Because June's spike won't wait.
Need help making sense of your electricity costs or finding smarter options before rates jump? Consulting with can help you plan ahead without the guesswork.
