What the Price Spike Means for Northeast Ohio Manufacturers and How to Get Ahead
In the most recent PJM Interconnection Base Residual Auction (BRA) for the 2026/2027 planning year, capacity prices surged by over 30%, reaching $102.25/MW-day. For manufacturers and energy-intensive businesses across Northeast Ohio, this price hike isn't just a data point, it's a direct hit to your bottom line.
As manufacturing leaders commit to smart growth and innovation, it's essential to understand what this increase means and how to proactively manage rising energy costs.
What Happened in the 2026/2027 PJM Auction?
PJM's auction determines how much power generators will be paid to ensure electricity reliability during peak demand periods. The jump from $90/MW-day in 2025/2026 to $102.25/MW-day signals a tightening energy market, driven by factors such as:
- The retirement of baseload power plants
- Slower-than-expected deployment of new generation resources
- Delays in transmission infrastructure upgrades
- Increased grid reliability requirements amid extreme weather volatility
These costs are ultimately passed down to commercial and industrial customers. Manufacturers, many with 24/7 operations, are among the hardest hit.
What It Means for Your Business
While these price increases won't be fully realized until 2026/2027, many electricity suppliers begin factoring future costs into contracts as early as 18 to 24 months in advance. That means your next energy contract could already reflect this price spike, even if it's years away from affecting the grid.
If your facility is on a variable rate or renewing soon, the time to act is now.
How Manufacturing Works Can Help
TPI Efficiency is the preferred energy and LED partner for Manufacturing Works and a proud member since 2016. TPI specializes in helping Ohio manufacturers protect their margins by identifying, negotiating, and implementing energy solutions that work for their unique operational needs, by using:
- Strategic electricity procurement to avoid volatile market conditions
- Demand response and peak load management solutions
- Onsite solar and energy efficiency projects with grant and funding support
- Forecasting future capacity costs to time your contracts wisely
Don't Let Rising Capacity Prices Catch You Off Guard
To schedule a no-obligation energy audit and explore ways to lock in savings before the next market shift hits your budget, contact Chuck Valenches at 216.453.2516.