PJM 2026/27 Third Incremental Auction Closes RPM Cycle in March
- Capacity & Wholesale Markets News Policy & Markets
Marin Holt
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- Auction Date: March 9, 2026
- Delivery Year: 2026/27
- Base Residual Auction Clearing Price: $329.17/MW-day
- Base Residual Auction Clearing Month: July 2025
PJM conducted its Third Incremental Auction for the 2026/27 Delivery Year on March 9, 2026, which was the final true-up auction in the cycle. The auction cleared positive-net capacity in some Locational Deliverability Areas, signaling continued tightness even after a full year of incremental adjustments. According to the PJM report, the auction was held to ensure sufficient capacity for the upcoming delivery year. The Base Residual Auction, which set the stage for this cycle, cleared at the $329.17/MW-day cap in July 2025, as reported by PJM and covered by PJM Inside Lines.
The Data
The Third Incremental Auction was a critical component of PJM’s Reliability Pricing Model (RPM), which aims to ensure reliable electricity supply in the region. The auction’s outcome indicates that some areas within the PJM footprint still require additional capacity to meet demand. The $329.17/MW-day reference price, set during the Base Residual Auction, served as a benchmark for this final true-up auction. As stated in the PJM report, the auction’s results will help maintain grid reliability during the 2026/27 Delivery Year.
Why It Matters
The Third Incremental Auction’s outcome has significant implications for market participants, including generators, transmission owners, and load-serving entities. The positive-net capacity cleared in some areas suggests that these regions may still face capacity constraints, which could impact electricity prices and reliability. As noted by PJM Inside Lines, the Base Residual Auction’s high clearing price was a response to supply and demand dynamics, and this final true-up auction reinforces the need for continued investment in generation and transmission infrastructure.
Critical Perspective
Given the Third Incremental Auction’s results, it is essential for stakeholders to carefully evaluate the ongoing capacity needs of the PJM region. The auction’s outcome, as documented in the PJM report, highlights the importance of continued monitoring and adjustments to ensure reliable electricity supply. As the region’s energy landscape evolves, it is crucial for market participants and regulators to work together to address emerging challenges and maintain a robust, reliable grid. The $329.17/MW-day reference price, established during the Base Residual Auction, will continue to serve as a key benchmark for future capacity auctions, influencing the trajectory of the region’s energy market.
