On Eve of PJM Auction Report release, data from a forthcoming EEA & NEEP report shows electric prices are rising, despite usage decreasing

Contact: Katie Thompson, Energy Efficiency Alliance (EEA), kthompson@keealliance.org, (215 792-2101

PENNSYLVANIA (July 10, 2026): The Energy Efficiency Alliance (EEA) and the Northeast Energy Efficiency Partnerships (NEEP) today released a “sneak peek” of data from an upcoming research report that shows electric bills have risen for Pennsylvanians well above inflation rates for more than a decade. The report—due out by the end of August—documents that from 2006-2025, the average electric usage by Pennsylvania residents has decreased 31.8 kWh per month while average electric bills have increased by $38.59 per month in real 2025 dollars.

Increases in costs in PJM—Pennsylvania’s regional grid operator—will increase electric bills for residents and business owners alike. The skyrocketing costs on the energy market impact everyone who pays a utility electric bill. The report will show generation charges are the largest portion of the average residential electric bill—representing an average of 49 percent of total bills in 2025. From 2020 to 2025, monthly residential generation charges rose an average of $8.91 in real 2025 dollars, or $106.87 annually representing a 23% increase in the generation charge

PJM Interconnection will release results early next week for its latest Base Residual Auction (BRA)—an auction to procure commitments to provide electricity 3 years ahead of now. Industry watchers all expect the price for a MWH to again push to the top of the “price collar” currently restraining cost increases. At the $325/MW-day ceiling, that would still be far above the 10-year average price of $149.72 in these auctions. The price collar, while helpful in the near term, isn’t a viable solution beyond this summer.

Real reforms are needed, along with real, lasting consumer relief.

Still, the storm that has surrounded PJM for the past 2 years has a silver lining. It’s a new chapter at PJM, where once glacial-paced work proceeded to accelerate new generation. EEA acknowledges the many changes and efforts from PJM leadership. But it’s not yet enough to fix a system inadequate to today’s circumstances. We look forward to the hearing that the Federal Energy Regulatory Commission has called for July 23—shortly after the July 14 auction results will be confirmed—to address structural reforms at PJM.

At EEA, we know that energy efficiency is a least cost resource and can play a significant role in reducing usage—and thus costs—at any price point. We’re providing these highlights from our forthcoming report with NEEP to underscore the importance of addressing the complex and highly impactful issues tied to energy procurement, utility business models and consumer bills.

One thing remains clear: we continue to need energy efficiency now more than ever. Investments in efficiency programs benefit every ratepayer and offer the swiftest path to lower costs for all.