Businesses and households in the largest US power grid will pay a record $16.1 billion for electricity amid an AI-driven demand surge. PJM Interconnection set the daily capacity price at $329.17 per megawatt, up from $269.92. Utilities are calling for more generation, which could raise consumer bills by 1.5% to 5%.

Shares of power producers like Constellation and Vistra rose after PJM’s auction results. The auction secures electricity supplies starting in June 2026. Independent power producers predict revenue boosts from the auction, with Constellation expecting $2.2 billion, Vistra $1.2 billion, and Talen $805 million.

Data centers are blamed for high prices, with projections showing a demand increase largely tied to large loads and data centers. PJM’s power mix will include 45% natural gas, 21% nuclear, 22% coal, 4% hydro, 3% wind, and 1% solar. Debate persists over the need for older fossil-fuel plants.

Read more at Yahoo Finance: AI Boom Leads to Record US Grid Costs, Call for New Plants