{"version":"1.0","provider_name":"Citizens Utility Board","provider_url":"https:\/\/www.citizensutilityboard.org","title":"CUB statement: Capacity market prices reflect need for data center reform | Citizens Utility Board","type":"rich","width":600,"height":338,"html":"<blockquote class=\"wp-embedded-content\" data-secret=\"YnWTE18lrt\"><a href=\"https:\/\/www.citizensutilityboard.org\/blog\/2025\/12\/17\/cub-statement-capacity-market-prices-reflect-need-for-data-center-reform\/\">CUB statement: Capacity market prices reflect need for data center reform<\/a><\/blockquote><iframe sandbox=\"allow-scripts\" security=\"restricted\" src=\"https:\/\/www.citizensutilityboard.org\/blog\/2025\/12\/17\/cub-statement-capacity-market-prices-reflect-need-for-data-center-reform\/embed\/#?secret=YnWTE18lrt\" width=\"600\" height=\"338\" title=\"&#8220;CUB statement: Capacity market prices reflect need for data center reform&#8221; &#8212; Citizens Utility Board\" data-secret=\"YnWTE18lrt\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" class=\"wp-embedded-content\"><\/iframe><script type=\"text\/javascript\">\n\/* <![CDATA[ *\/\n\/*! This file is auto-generated *\/\n!function(d,l){\"use strict\";l.querySelector&&d.addEventListener&&\"undefined\"!=typeof URL&&(d.wp=d.wp||{},d.wp.receiveEmbedMessage||(d.wp.receiveEmbedMessage=function(e){var t=e.data;if((t||t.secret||t.message||t.value)&&!\/[^a-zA-Z0-9]\/.test(t.secret)){for(var s,r,n,a=l.querySelectorAll('iframe[data-secret=\"'+t.secret+'\"]'),o=l.querySelectorAll('blockquote[data-secret=\"'+t.secret+'\"]'),c=new RegExp(\"^https?:$\",\"i\"),i=0;i<o.length;i++)o[i].style.display=\"none\";for(i=0;i<a.length;i++)s=a[i],e.source===s.contentWindow&&(s.removeAttribute(\"style\"),\"height\"===t.message?(1e3<(r=parseInt(t.value,10))?r=1e3:~~r<200&&(r=200),s.height=r):\"link\"===t.message&&(r=new URL(s.getAttribute(\"src\")),n=new URL(t.value),c.test(n.protocol))&&n.host===r.host&&l.activeElement===s&&(d.top.location.href=t.value))}},d.addEventListener(\"message\",d.wp.receiveEmbedMessage,!1),l.addEventListener(\"DOMContentLoaded\",function(){for(var e,t,s=l.querySelectorAll(\"iframe.wp-embedded-content\"),r=0;r<s.length;r++)(t=(e=s[r]).getAttribute(\"data-secret\"))||(t=Math.random().toString(36).substring(2,12),e.src+=\"#?secret=\"+t,e.setAttribute(\"data-secret\",t)),e.contentWindow.postMessage({message:\"ready\",secret:t},\"*\")},!1)))}(window,document);\n\/* ]]> *\/\n<\/script>\n","description":"The following is a statement from CUB Executive Director Sarah Moskowitz on the results of PJM Interconnection&#8217;s 2027-28 capacity auction, announced Wednesday, Dec. 17 (Read the full statement here.) After a third straight auction marked by unacceptably high prices, it is painfully obvious that our capacity market is breaking under the weight of data center demand and a dysfunctional interconnection queue. Even worse, since the auction results fell below the reliability requirement, consumers are getting the worst of all worlds: paying more money for reduced electric reliability, while existing generators get a windfall. These results ramp up the urgency for decisive action from both PJM Interconnection and individual states, such as Illinois, to rein in runaway data center-related energy demand and protect customers from future price spikes. Data center companies are among the wealthiest in the world, and it is simply unconscionable that customers should pay unbearably high power costs to foot the bill for data center energy guzzling. This is a historic moment that requires action and leadership from PJM and the states in defense of electric customers. What\u2019s good for reliability is good for affordability: Data centers must be held accountable for their own costs. Without real reforms, in just a few years 67 million electric customers in the PJM footprint could face rolling blackouts and an escalation of power bills that make the current price spikes seem tame. While there is a long list of actions that are required, these reforms are at the top of the list: PJM should extend the lower price cap to protect customers, and eliminate any price floor. PJM and states should require data centers to bring their own new clean energy. States should require that data centers operate under maximum energy efficiency and assign data centers into a special rate class to make sure those facilities, and not everyday customers, are paying for data center-related upgrades to the distribution system. \u2013CUB Executive Director Sarah Moskowitz Background: On Wednesday, Dec. 17, PJM Interconnection, a \u201cRegional Transmission Organization,\u201d announced the results of an auction to determine the price for reserve power, or \u201ccapacity.\u201d PJM is the largest grid operator in the country, serving 67 million customers across all or parts of 13 states and the District of Columbia (including Commonwealth Edison\u2019s 4.2 million customers). The auction (technically referred to as the \u201cBase Residual Auction\u201d) was held Dec. 4-10. It set a capacity price of $333.44 per Megawatt-day, which will be in effect from June 1, 2027 through May 31, 2028. Capacity costs are payments consumers make to power generators\u2013the companies that own power plants. These costs are a key component (roughly 20 percent) of the price ComEd customers pay for electricity. ComEd has not yet announced how this will impact its supply price in June of 2027. Like last year, the capacity cost hit a price cap negotiated by Pennsylvania Gov. Josh Shapiro. The price is more than 11 times higher than what the price was for 2024-2025. That price cap is set to go away after this auction, when a status quo, higher price cap is reinstated. Capacity auction prices in recent [&hellip;]","thumbnail_url":"https:\/\/www.citizensutilityboard.org\/wp-content\/uploads\/2017\/03\/CUB_IL_LogoBadgeRGBAdminLogo.png","thumbnail_width":254,"thumbnail_height":254}