If you live in the Mid-Atlantic or Midwest, prepare for a steep rise in electricity bills this summer. This isn't just due to your air conditioner running non-stop — it's the result of significant changes in how electricity is priced across 13 states and Washington, D.C., managed by PJM Interconnection.
The PJM Interconnection oversees the electric grid across a large portion of the U.S., and their recent capacity auction for 2025-2026 has caused capacity prices to surge by more than 830%. These costs will be passed on to consumers in the form of higher electricity bills, starting June 2025.
PJM's capacity auctions are designed to ensure that power plants are available during periods of peak demand, such as hot summer days. These plants are paid to stay on standby, and their compensation is reflected in your bill as a "capacity charge."
In the most recent auction, prices skyrocketed:
From ~$29 to nearly $270 per megawatt-day.
In areas like Baltimore, the price exceeded $466 per megawatt-day.
This massive jump is a direct result of multiple grid challenges.
Several critical factors are pushing prices up:
Retirement of Older Plants: Many outdated, inefficient power plants are being shut down, reducing supply.
Soaring Demand: Population growth, electric vehicles, and energy-intensive data centers are increasing electricity consumption.
Lagging Infrastructure: New power plants and transmission lines aren't being built fast enough to match rising demand.
Together, these factors are creating a supply-demand imbalance, leading to higher energy costs.
Households in the PJM service area are expected to be hit hardest. Below is a breakdown of expected increases:
| State | Expected Increase |
| Ohio | 10-15% depending on provider |
| Pennsylvania | 10-20% depending on provider |
| Delaware | 7% statewide |
| Maryland | 2-24% depending on provider |
| New Jersey | 17-20% |
| Washington D.C. | 10% for PEPCO customers |
| Illinois | $7.50 - $10/month for ComEd users |
The exact impact varies by utility company and how heavily they rely on capacity charges.
It’s important to remember that capacity charges are just one component of your overall electricity bill. Many consumers are also experiencing increases in generation and delivery costs. As these compound, the true cost of grid electricity is becoming more unpredictable and unsustainable.
If you’re concerned about skyrocketing electricity bills, solar power is one of the smartest long-term solutions. Here’s how rooftop solar can protect your finances:
Once installed, a solar power system locks in your electricity rate — shielding you from rate hikes for 25+ years.
During peak sun hours, your panels produce energy that can offset or even eliminate your need for grid power, especially during high-cost periods.
In many states, excess electricity you produce can be sold back to the grid, earning you credits and reducing future bills.
Studies show that homes with solar power sell faster and at higher prices.
Electricity bills across 13 states are poised to rise dramatically starting in June 2025. Rather than cutting back on comfort or bracing for bill shock, consider making a proactive switch to solar.
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Make your home energy-independent this summer. Contact Huijue Technology Group and discover how easy it is to break free from rising grid electricity costs.
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