Read the delivery year alongside the auction year
PJM procurement dates and the period being served are distinct. Its 2026/2027 Base Residual Auction report records clearing prices and commitments for that delivery year. A headline referring only to the year of the auction can make the timing unclear. Keep the report, delivery period and applicable location together when discussing any effect on a business supply agreement.
Keep the auction price in its own units
The report states a $329.17/MW-day clearing price for the 2026/2027 auction. That unit is not cents per kWh. Converting it to a business cost requires account-specific obligations and the agreement’s allocation method. The auction price alone cannot establish a bill estimate. Avoid multiplying it by an arbitrary building demand number without the necessary methodology.
Trace the path into the contract
Some products incorporate capacity in a fixed price; others pass specified costs through. Determine which treatment applies before attributing a bill change to the auction. Ask about new-term quotes separately from an existing contract. Check any change-in-law or adjustment clauses rather than assuming a market headline overrides the written agreement.
Focus on the action the business controls
Request an inclusion list, clarify the current obligation and prepare for renewal. Examine demand-management projects on their own engineering and tariff basis. Do not promise that a single plant or a lower monthly peak will undo an auction result. The useful decision is how much price exposure the business accepts and whether it can monitor that exposure.
A practical example
Illustrative explanation, not a customer outcome.
An offer described as “energy only” and another described as “fully fixed” are not necessarily comparable. Before calculating a difference, ask both suppliers whether the relevant capacity cost is included and what adjustments remain permitted.
Put the review into practice
| Review step | What to record |
|---|---|
| Check the date | Publication, auction, data and delivery years can differ. |
| Identify the scope | Wholesale market records are not retail offers. |
| Trace the contract | Establish which component can actually change for the account. |
| Use a scenario | Make the assumptions visible rather than assign invented probabilities. |
Questions worth asking
Is $329.17 a business electricity rate?
No. It is expressed in dollars per MW-day for wholesale capacity.
Does every business see the same bill effect?
No. Allocation, product terms, timing and other bill components differ.
Continue the comparison
Sources and scope
Reviewed October 15, 2026. Follow the source’s own data period, effective dates and current terms. Examples are hypothetical unless expressly identified as a dated published result. A source is context, not a guarantee of eligibility or a product endorsement.