Last week, CPV Retail hosted a webinar led by Khristian Camacho, VP of Pricing and Supply, and Cole Maccioli, VP of Sales.

During the session, Camacho outlined five trends reshaping the PJM market, including tightening grid conditions, 5CPs, and the market’s increasing sensitivity to weather. Maccioli then discussed how businesses can use these insights to put a plan in place that reduces uncertainty while maintaining flexibility.

Here are the five trends reshaping the PJM market:

1. Electricity demand is growing rapidly. Electricity demand is accelerating, driven by data centers, electrification, and other factors. This growth is putting additional pressure on generation and transmission infrastructure, while supply growth is not keeping pace.

2. Capacity prices have increased significantly. As capacity prices are repriced, they now make up a significantly larger share of overall electricity supply costs. Capacity costs now represent a significantly larger portion of overall electricity supply costs.

3. Transmission congestion continues to rise. Rising transmission costs are being driven by load growth, generator retirements, delayed transmission upgrades, and other factors. For customers, this can mean higher delivered costs, wider regional price differences, and increased volatility.

4. Weather events are becoming more impactful. Weather events are having a greater impact on pricing, as seen during Winter Storm Elliott, summer heat waves, severe storms, and hurricanes. These events can contribute to record pricing, fuel supply disruptions, peak demand records, and other market challenges.

For summer 2026, above-normal temperatures are expected, with continued attention on regional drought conditions, peak cooling demand, and tropical storm activity.

5. Market volatility has increased. Volatility is being driven by the same factors discussed above, including congestion, demand growth, and weather. As a result, customers should prepare for greater procurement uncertainty and place more emphasis on timing.

The bottom line: the PJM market is becoming tighter, more volatile, and more weather-sensitive than it has been in years.

How can businesses use this information to their advantage?

Plan Ahead: In a tighter, more volatile market, timing matters. Businesses should begin evaluating their energy needs before contract deadlines or seasonal price pressures create urgency. Planning ahead gives decision-makers more time to review usage patterns, monitor market signals, compare procurement strategies, and identify opportunities to manage risk before prices move further.

Set a Baseline: Before evaluating procurement options, businesses should understand their current energy usage, contract terms, budget exposure, and risk tolerance. Establishing this baseline helps create a clearer starting point for decision-making, making it easier to compare offers, identify cost drivers, and determine which strategy best supports operational and financial goals.

Evaluate Product Options: Once businesses understand their needs and risk profile, they can evaluate which energy products best support their goals. Fixed-price, standard block products vs. load-following structures, etc. Comparing these options side by side can help businesses choose a strategy that balances cost control with the ability to respond as market conditions change.

Watch the recent webinar to learn more about what these trends mean for your business.