Houlihan Lokey is pleased to present its report on the PJM 2026/2027 capacity auction, which summarizes the auction results and offers our views on the key takeaways and considerations.

Numerous factors contributed to the record $329.17/MW-day clearing price, at the FERC-approved cap, including higher forecasted peak load and tightening reserve margins. PJM continues to face tight supply-demand conditions due to unprecedented demand levels driven by data centers, the resurgence of manufacturing, electrification initiatives, and population growth. Given the current market environment, M&A and financing activity within PJM has increased relative to historical levels. We saw this firsthand, successfully announcing a number of landmark transactions this year, including the sale of Potomac Energy Center, a 774 MW natural gas power plant in Loudoun County, Virginia, to Blackstone Energy Transition Partners.

Please don’t hesitate to call or email should you have any questions or would like to discuss this report. We look forward to connecting.

Sources: PJM, industry publications.

About Houlihan Lokey

Houlihan Lokey, Inc. (NYSE:HLI) is a global investment bank with expertise in mergers and acquisitions, capital solutions, financial restructuring, and financial and valuation advisory. Houlihan Lokey serves corporations, institutions, and governments worldwide with offices in the Americas, Europe, the Middle East, and the Asia-Pacific region. Independent advice and intellectual rigor are hallmarks of the firm’s commitment to client success across its advisory services. The firm is the No. 1 investment bank for all global M&A transactions for the past two years, the No. 1 M&A advisor for the past 10 years in the U.S., the No. 1 global restructuring advisor for the past 11 years, and the No. 1 global M&A fairness opinion advisor over the past 25 years, all based on number of transactions and according to data provided by LSEG.