Good morning.
PJM's 2028/29 capacity auction cleared at the $325/MW-day price cap and still came up 6,831 MW short of its reliability requirement. That is not a rounding error. It is confirmation that demand has structurally outrun the supply pipeline in the largest grid in North America, and the next auction will be worse before it gets better.
For capacity holders with deliverable interconnection rights in PJM, this is the market validation they have been waiting for. For power buyers without bilateral contracts or self-supply, exposure to a price cap that will reset higher in future auctions is now a first-order financial risk.
Today's issue also covers a $15 billion, 16-building campus proposed for a former dynamite factory site in Lawrence County, Pennsylvania, Pennsylvania's new law requiring annual energy usage reports from data centers, SoftBank's 10 GW federal lease in Piketon, Ohio and why the current administration's track record makes that position materially riskier than it looks, and a Mississippi PSC commissioner publicly questioning whether Entergy Mississippi should remain in MISO.
There is a lot in today's issue.
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The Morning Read