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.