07/23/2026
Capacity costs can change the way commercial buyers think about total energy spend.
In PJM, that’s not theoretical. Recent auctions have cleared near record levels—highlighting how quickly non-commodity components can reshape budgets, even when the energy rate looks stable.
Many teams still anchor on the energy price ($/MWh) and treat everything else as pass-through.
Capacity is a real line item, and it can move fast when supply-demand tightens. If it’s not modeled, it shows up later as a surprise variance.
When you’re reviewing contracts or forecasting next year’s spend, ask:
1) Where do capacity charges show up?
2) What’s your exposure by timing and zone?
3) Do you have any flexibility levers that can reduce peak contribution?
Good energy pricing doesn’t always mean good total cost.
We can help you assess how capacity-related costs are reflected in your budget assumptions. Get in touch: http://spr.ly/6186BEsBya
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