by Steve Haner

The regional electric grid operator that serves Virginia held another of its periodic auctions to secure sufficient supply for the future last week and the price went up again, slightly higher than in last summerโs auction. Even worse news, PJM Interconnection fell short of securing its target amount needed to guarantee reliability.
PJM has been holding auctions for future supply on an accelerated basis, and the one last week secured energy contracts for late 2027 through early 2028.ย With the new contract period 18 months away, there is time for some adjustments by accelerating new supply or recalculating the forecasts. ย The shortfall still set off alarm bells at a meeting of the Federal Energy Regulatory Commission (FERC).
The price paid was $333 per megawatt-day, up slightly from the $329 per megawatt-day price in the July 2025 auction (for the 2026-27 rate period). Those prices are for the entire PJM region, so will apply to Dominion Energy, Appalachian Power Company, and the various regional electric cooperatives in Virginia. The cooperatives are the most sensitive to capacity pricing due to their reliance on purchased power.
Dominionโs need for purchased power is likely to spike substantially if President Trumpโs Administration succeeds in cancelling the Dominion offshore wind project. A pause in construction of the 2.6-gigawatt facility was announced yesterday. The other four projects paused are outside the PJM territory, but if they do fully die it will change all the electricity math on the East Coast.
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