What It Means for Your Organization — And Why HEAPY Is the Partner You Need Now
Energy costs are rising across the country, and a significant force behind these increases is a component of the electric bill that many organizations rarely examined until recently: capacity costs. These charges have risen sharply, with some energy users seeing electricity rates increase by 25% to 50%. This shift is reshaping how organizations plan, budget, and operate. It demands a strategic response.
This is where HEAPY steps in. With a national footprint and a deep bench of energy and grid market specialists, we help organizations turn a volatile energy landscape into an opportunity to strengthen resilience, reduce exposure, and operate more intelligently.
Understanding the PJM Capacity Auction
Pennsylvania–New Jersey–Maryland Interconnection (PJM) is the regional transmission organization responsible for ensuring reliable electricity across 13 states and the District of Columbia. One of its most influential mechanisms is the PJM Capacity Auction, a forward-looking market that secures sufficient generation to meet future demand. In practice, it functions as the grid’s reliability insurance program. Power plants are compensated for being available when the grid needs them most, and those costs flow directly to energy users.
For years, these charges were modest. Recent auctions, however, have led to 900% cost increases, driven by delayed auction cycles, evolving market rules, and tightening grid conditions. The result is a new cost reality that organizations must actively manage.
How HEAPY Helps Organizations Stay Ahead
HEAPY’s national reach allows us to support clients across PJM and beyond, including MISO, ERCOT, and other regional markets. Our teams understand the nuances of each region and translate that knowledge into strategies that reduce risk and deliver measurable savings. We focus on solutions that can be deployed quickly and scaled across portfolios.
Immediate, Low-Cost Actions for Fast Impact (Select Locations)
- Peak Load Contribution (PLC) Reduction Programs that lower future capacity charges by reducing load during the grid’s peak hours.
- Demand Response participation, enabling organizations to earn payments for reducing load during grid emergencies. Enrollment must be before Summer 2026.
Low to Medium Cost Measures for Any U.S. Location
- Intelligent Building Management to optimize building systems and avoid unnecessary peak demand.
- Retro Commissioning to tune existing systems and eliminate inefficiencies that drive up capacity exposure.
Advanced Evaluation and Long-Term Planning for Any U.S. Location
- Energy Auditing to uncover hidden inefficiencies and prioritize high‑ROI improvements.
- Peak Load Impact Analysis to understand how equipment replacements influence future capacity charges.
- Peak Load Forecasting for new construction and significant renovations to prevent long-term cost lock-in.
A National Partner for a Changing Energy Landscape
HEAPY’s nationwide presence gives clients a strategic advantage. We bring consistency across portfolios, regional expertise where it matters, and a forward-looking approach that positions organizations to thrive in a more complex energy environment. As capacity costs continue to rise, the organizations that act now will be the ones that maintain stability, protect budgets, and build long-term resilience.
Take Control of Capacity Costs Today
The energy market is shifting, and the organizations that respond proactively will stay ahead. To explore which strategies best align with your facilities and long-term goals, contact the HEAPY Innovation Lab or the Building Optimization Group. We’re ready to help you turn rising costs into a strategic advantage.
Ryan Hoffman
PE, CEM, LEED AP BD+C, O+M
Building Optimization Practice Director
Senior Principalrmhoffman@heapy.com
937-287-2140
Bryan Kinch
LEED AP BD+C
Senior Sustainability & Resiliency Specialistbnkinch@heapy.com
937-224-0861 x2009
