PJM enters September with a market that remains fundamentally tight, although near-term pricing may ease as summer temperatures moderate. Strong load growth, limited new generation, elevated capacity costs, and transmission constraints continue to support a higher-cost market structure and create the potential for increased volatility. The recent late-summer heat and resulting system stress highlight the sensitivity of PJM prices to weather and generation availability, while relatively stable natural gas fundamentals provide some offsetting downward pressure on energy prices. Looking ahead, we expect September to bring a mix of seasonal demand reduction and continued structural supply-demand pressure, with weather, generator outages, congestion, and natural gas pricing remaining the primary drivers of short-term price movement. 

A proposal from Gov. Greg Abbott would potentially dismantle municipally owned utilities Austin Energy and CPS Energy and allow customers in those territories to choose competing retail electricity providers. Supporters argue competition could lower electricity costs, while city officials say their nonprofit utilities already offer competitive rates and warn that transitioning into Texas’ deregulated market could cost customers more than $1 billion in Austin alone. Texas originally deregulated most of its electricity market in 2002 but allowed municipal utilities and cooperatives to opt out. If the proposal advances, it could represent a significant expansion of Texas retail electric choice.   The Texas Tribune

Utility Dive reported yesterday that ERCOT electricity demand has remained at unprecedented levels. Average hourly load reached a record 74.5 GW during the week ending August 22, 10% above the highest weekly average recorded in summer 2025. Even more notable, each of the six weeks from late July through August 29 exceeded the previous weekly record set in 2023. ERCOT's long-term forecast now has peak load reaching 154 GW by 2035. The sustained demand reinforces the scale of the generation and transmission challenge Texas faces as population, industrial development and data centers continue adding load.  Utility Drive

PJM is preparing a special Reliability Backstop Procurement that could seek roughly 6 GW of new capacity outside its normal capacity auction process. The proposal comes after PJM’s latest capacity auction fell short of its targeted reserve margin amid rapidly growing electricity demand, particularly from data centers. The backstop would give new resources—including generation, battery storage and other qualifying projects—a separate path to help fill the reliability gap. The plan still requires FERC approval, but it highlights how quickly PJM is adapting its market structure as new load outpaces available generation.  Energy Storage News