PJM power auction results yield sharply higher prices
Adds details about shares of power producers
NEW YORK, July 30 (Reuters) -An annual power market auction by the largest U.S. electrical grid operator resulted in prices more than 800% higher than last year as supply dwindled and demand increased, the operator said on Tuesday.
PJM Interconnection, which covers parts of 13 states from Illinois to New Jersey, revealed the results of its 2025 to 2026 capacity auction. Prices for power plants landed at $269.92 per megawatt-day, compared to $28.92 per megawatt-day for year-ago auction, the grid operator said in a statement.
"The significantly higher prices in this auction confirm our concerns that the supply/demand balance is tightening," said PJM Chief Executive Officer Manu Asthana said. "The market is sending a price signal that should incent investment in resources."
The auction secured 135,684 megawatts for the period from June 1, 2025, through May 31, 2026. The power mix from generators included 48% gas, 21% nuclear, 18% of coal, 1% of solar, 1% of wind, 4% of hydro, 5% of demand response and 2% from other resources, PJM said.
Shares of independent power producers with nuclear fleets, including Constellation EnergyCEG.O, Vistra VST.N and TalenTLN.O, jumped in after-hours trading following the auction.
Constellation shares were up about 10% to $185.10, Vistra rose 12% to $77.50 and Talen gained roughly 18%, according to Refinitiv Eikon data.
Reporting by Laila Kearney, additional reporting by Arathy Somasekhar in Houston; Editing by Cynthia Osterman
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