PJM capacity prices hit price cap, reserve shortfall grows | Utility…

PJM's capacity auction hit its price ceiling while reserve margins fell short, indicating the current pricing mechanism fails to attract new generation or demand response capacity. The shortfall signals structural dysfunction in the grid's ability to meet future reliability requirements. If you build demand response, battery storage, or fast-start generation in PJM's footprint, the market is screaming that it will pay whatever it costs - the price cap just came off. You have a window before regulators redesign this auction, and the next buyer will be forced to overpay or go without.