Manufacturing News
April 24, 2026
April 24, 2026 · Statewide · Story 2 of 3
PJM Capacity Prices and Indiana Electricity Costs: The Stack Is Real
PJM's July 2025 capacity auction for the June 2026-May 2027 delivery year cleared at $329.17 per megawatt-day, up from roughly $28 per megawatt-day two years earlier. That prior jump drove an estimated 30% bill increase for approximately 65 million customers in PJM territory; the 2026-2027 result adds another estimated 5% on top of that. Indiana straddles two grids: most of the state, Duke, AES Indiana, NIPSCO, Centerpoint, sits in MISO, while Indiana-Michigan Power and northeast Indiana are in PJM. On the retail side, Duke customers are absorbing roughly an 11% overall increase in two steps; NIPSCO residential customers are seeing approximately 16.75% phased in; and AES Indiana's stacked approved and requested increases could push customers toward 20% total by end of 2026 when grid projects and new storage are included. Commercial and industrial tariffs follow the same trend line, often higher in percentage terms than residential.
- For the huddle
What do the PJM capacity auction results mean for Indiana electricity costs in 2026 and 2027?
If any of your facilities or key suppliers sit in PJM territory, Indiana-Michigan Power, northeast Indiana, expect roughly another 5% increase on top of your approved retail rate hikes. Facilities in MISO face their own rate case stack: Duke, NIPSCO, and AES Indiana are all in motion with increases ranging from 11% to potentially 20% by end of 2026, and the capacity cost trend in MISO is pointing the same direction as PJM.
From the brief, April 24, 2026
- Slate Auto's Warsaw Plant: A New Labor Competitor and a Major New Grid Load
- PJM Capacity Prices and Indiana Electricity Costs: The Stack Is Real
- The Schaeffer Coal Fight: Who Pays, and How Much, Depends on a Federal Court
Related
- NIPSCO's Schahfer Coal Plant Costs Indiana Manufacturers $174,000 a Day While Plymouth Chases Innovation Dollars and Nucor Expands
- Indiana Industrial Property Tax Increase Hits 25.8% as Nuclear Ready Program Opens and NIPSCO's Schahfer Fight Escalates
- Dalton Foundry Reopening in Warsaw, Indiana Runs on a Different Clock Than the Automakers Buying Its Blocks
Manufacturers Energy Grant Program
Free for Indiana manufacturers
Manufacturers from qualifying Indiana counties receive free, ongoing energy auditing and cost control that reduces their energy bills and keeps them low, month after month. Every line item checked and validated, every opportunity found comes with a step-by-step guide to capture it.
EDCs: sponsor this program and it carries your organization's name For economic developers →