US Manufacturers Face 11-Fold Power Bill Surge as PJM Capacity Prices Jump to $329
Updated
Updated · Ars Technica · Jul 7
US Manufacturers Face 11-Fold Power Bill Surge as PJM Capacity Prices Jump to $329
3 articles · Updated · Ars Technica · Jul 7
Summary
$1,600-to-$12,000 monthly bills at Ohio’s Belden Brick show how sharply electricity costs are rising for manufacturers across PJM’s 13-state grid.
AI data center demand is straining PJM and pushing capacity prices to $329.17 per megawatt-day in 2026 from $28.92 in 2024, with factory bills rising faster than those of other businesses or households.
Steelmakers say the hit is especially severe because electricity makes up 20% to 40% of production costs; Metallus says its power costs are up 70% since 2024, adding $15 million a year.
The squeeze complicates Trump’s manufacturing revival push in the Rust Belt even as his support for the AI buildout helps drive demand that is raising industrial operating costs.