Manufacturing News
June 16, 2026
June 16, 2026 · Statewide · Story 2 of 3
PECO-Amazon Transmission Deal Exposes the Electricity Capacity Charge Gap Indiana Manufacturers Are Carrying
FERC approved a transmission security agreement between PECO Energy and Amazon Data Services in November 2025 for a two-million-square-foot hyperscale campus in Falls Township, Pennsylvania. These agreements function as take-or-pay contracts, data centers post a 10-year letter of credit covering transmission upgrade costs. What they don't cover: supply and capacity costs, which account for roughly half of a typical utility bill. PECO's own spokesperson confirmed that directly.
Here's the Indiana-specific number. PJM's independent market monitor found that data centers drove PJM wholesale power costs up 54% in 2025 to $67 billion, with capacity costs rising 262% year-over-year. FERC declined to assess ratepayer harm as outside the scope of the proceeding. Indiana and Michigan Electric sits in PJM and is directly exposed to that 262% increase. NIPSCO sits in MISO, where capacity prices hit $666 per megawatt-day in the 2025/26 auction. Neither the IURC's February 2025 large-load tariff nor NIPSCO's GenCo structure addresses electricity capacity charge pass-through to existing industrial ratepayers, those frameworks cover transmission cost allocation and new-load supply. Pull your most recent bill and identify the capacity charge line item as a percentage of the total. Then ask your energy advisor what your exposure looks like if that number doubles before 2028.
- For the huddle
What percentage of my Indiana electricity bill is the capacity charge?
On a typical Indiana commercial or industrial bill, supply and capacity costs together account for roughly half of the total. The capacity charge is a distinct line item, pull your most recent bill, identify it specifically, and establish that number as a baseline before your next conversation with an energy advisor. That's the figure you need to stress-test against further increases.
From the brief, June 16, 2026
- Chore-Time / CTB Breaks Ground on 79,000-Square-Foot Milford Expansion
- PECO-Amazon Transmission Deal Exposes the Electricity Capacity Charge Gap Indiana Manufacturers Are Carrying
- Indiana Posts Second-Highest Workforce Quit Rate in the Country
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