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Board hears update: power-supply costs rising, driven by PJM capacity prices
Summary
Staff reported 2026 power-supply costs are expected to rise from about $55 million to roughly $60 million, primarily due to higher PJM capacity-auction prices and a January spike tied to Winter Storm Fern; capacity charges in January rose from about $100,000 last year to roughly $770,000 this year.
Board staff reported a notable increase in power-supply costs flowing into the 2026 budget, driven mainly by higher PJM capacity-auction prices and an extreme cold-weather event in January.
Assistant director Jim said the utility budgeted about $60 million for power supply in 2026, up from roughly $55 million in 2025. He attributed the primary driver to capacity and transmission components of bills, which have increased sharply because the PJM capacity auction for recent delivery periods cleared at historically high prices. Jim cited January as an especially high month: capacity charges increased from about $100,000 last year to about $770,000 this year, with transmission charges also higher.
Staff cautioned that the root causes are regional — including retirement of generation assets and higher demand — and that local measures alone are unlikely to reverse the increases. The board said it would continue to monitor costs, especially heading into the summer peak season.
