We stated a year ago in our December 2024 issue of the Calpine Retail Choice Regulatory Bulletin that, “2024 marks a dramatic inflection point for the electricity market where supply and demand diverge and a secular period of ‘scarcity’ has formally commenced.” That assessment proved to be correct, as evidenced by two consecutive record breaking PJM capacity auctions that cleared for DYs 2026/2027 and 2027/2028 resulting in the RTO being 6.6 GWs short capacity for the first time since the inception of the capacity market. As always, Calpine Retail will guide you through what we expect will be continuing tight market conditions for 2026.