Beating the PJM Price Surge: How One Manufacturer Dodged an 833 Percent Cost Increase

Project Overview

A product development and prototyping company operating across multiple states was facing a severe capacity cost shock at its Ohio facility. After PJM’s 2024 auction, capacity charges were set to spike more than eightfold starting in 2025. Most suppliers were planning to pass those costs directly through. The organization needed fast, strategic intervention to protect its budget and avoid years of inflated spend.

The Challenge

The Ohio facility was bracing for an 833 percent increase in PJM capacity costs—from roughly $28.92 to $269.92 per MW-day for the 2025–2026 delivery year. Without action, the cost impact would have landed directly on the client’s operating budget.

The Solution Mix

Mantis Innovation secured a 36-month fixed-rate extension through Constellation, using a mitigation offer to eliminate the impact of the 2025/2026 capacity increase. Locking in a future-start contract early also positioned the organization ahead of rising long-term demand from data centers, AI, and electrification across the PJM region.

The Results

The client avoided the surge entirely and gained rate stability through 2028 without having to switch suppliers or renegotiate mid-term.

This strategy prevented $31,418 in additional capacity charges and positioned the client ahead of one of the most volatile pricing events in PJM history.