PJM Auction Costs May Push Your AC Bills Over $200

PHILADELPHIA, TX, UNITED STATES, May 21, 2025 /EINPresswire.com/ -- PAElectricityRatings.com wants to warn Pennsylvania electricity customers that they could see their summer cooling bills jump by as much as $30 over last summer. The hike is due to last year's PJM capacity auction costs raising PA utility default rates by 5 -16%.

Each year, the PJM Interconnection holds a capacity auction to line up power plants for the following year to serve all of its electric grid customers in PA and 12 other states. The final auction prices are usually fairly low, less than $30 per megawatt-day. That amount is passed on to ratepayers as a small addition to a customer's monthly electricity bill.

But, last summer, PJM's capacity auction for 2025 hit a staggering price of $269.92 per megawatt-day, about 800% above the $28.92 per megawatt-day rate from the year before. Reasons for this stemmed largely from too-few power plants, transmission constraints, and PJM's slow interconnection queue.

Nevertheless, these higher costs start heating up Pennsylvania electricity bills on June 1.

How Much More It Will Cost This Summer
Energy analysts at PAElectricityRatings.com found that residential "Price to Compare" customers could see their bills rise by 5 -16%, depending on their local utility. The increase essentially hikes electricity rates by an average of 2 cents per kWh. The latest EIA data (Feb. 2025) puts the average total Pennsylvania electric rate at 18.01 cents/kWh. On June 1, the PJM cost pushes that rate up by 2 cents to 20.00/kWh.

According to EIA residential usage data for 2015-2023, the average Pennsylvania home uses 978.97 kWh during the month of August. EIA data also shows the average August 2024 bill was about $171.00. Given NOAA forecasts for a hotter and rainy summer in Pennsylvania, PAElectricityRatings.com analysts calculate that customers may see their monthly summer bills easily exceed $200.00.

As a result, PAElectricityRatings.com is warning all Pennsylvania energy customers to shop retail electric suppliers for the lowest fixed plan rate available right now. By locking in the current price for 12 months or longer, consumers may avoid some of the added capacity costs from PJM. Plus, they might be able to shield their pocketbooks from other unexpected electric price increases later this summer.

Karl Trollinger, CEO of Electricity Ratings, adds "Our mission is to help consumers stay ahead of big price swings like this. It's important to remind Pennsylvania consumers that they have the power to choose their energy providers, especially with the precarious economics in play at this moment. Pennsylvania utilities may bear the brunt of these increased costs so sticking with your utility's price-to-compare rate may not be the best solution. On the other hand, retail providers have more options open to them when they shop the wholesale electric markets. So, by making informed choices about how to shop electricity plans, consumers can find the best deals."

PAEnergyRatings.com is a website operated by Electricity Ratings, LLC.
Electricity Ratings, LLC operates a network of energy shopping websites serving 17 states and 56 utilities, providing our energy comparison and ratings service to over 80 million customers. We provide our customers with the power to choose the best providers through our consumer reviews platform which provides a reliable, unbiased source of valuable consumer insight. And we back that up by offering in-depth energy company service analysis, personalized recommendations, and practical advice. Our mission is to help consumers harness the power of information to find, compare, and buy electricity and energy services from the best providers.

Lindsey Bodker
PA Energy Ratings
+1 866-303-9147
info@paenergyratings.com

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