6 Ways Energy Suppliers Can Support Small Businesses Amid PJM Auction Price Increases

2 min read

The recent PJM capacity auction has resulted in a significant surge in energy prices, with costs increasing for the 2025/26 delivery year. This spike poses a substantial challenge for small businesses, which often operate on tight budgets and may struggle to absorb these additional costs. AEP Energy has several strategies to help our clients manage these rising expenses effectively.

1. Fixed-Price Contracts: Offering fixed-price contracts can provide your small business with price stability and predictability. By locking in rates, you can better forecast energy expenses and avoid the volatility of fluctuating market prices.
2. Energy Efficiency Programs: Adopting energy efficiency measures can significantly reduce your overall energy consumption. This can include upgrading to energy-efficient lighting, HVAC systems, and machinery, as well as implementing energy management systems to monitor and optimize usage.
3. Demand Management: Small businesses can benefit from participating in demand response programs, which incentivize reducing or shifting energy use during peak demand periods. This not only helps lower your energy bills but also contributes to grid stability.
4. Renewable Energy: Utilizing renewable energy sources, such as solar or wind power, can help small businesses reduce their reliance on traditional energy sources and potentially lower their energy costs. AEP Energy has renewable energy plans, as well as resources to on-site renewable energy systems.
5. Energy Audits & Consultations: Your AEP Energy Small Business consultant can help your business identify areas where you can improve energy efficiency and reduce costs. We can provide actionable recommendations and suggest resources.
6. Transparent Communications: AEP Energy believes open and transparent communication with our small business clients about market conditions and potential price changes is crucial. By keeping you informed, we can help you plan and make informed decisions about your business’ energy use.

Conclusion

The recent PJM auction price increases present a significant challenge for small businesses, but AEP Energy has a range of strategies to help mitigate these impacts. By offering fixed-price contracts, promoting energy efficiency, facilitating demand management, providing renewable energy options, conducting energy audits, and maintaining transparent communication, we are ready to help you navigate these challenging times.

If you have any questions, reach out to your Small Business Energy Consultant or contact us online.

AEP Energy does not guarantee the accuracy, timeliness, suitability, completeness, freedom from error, or value of any information herein. The information presented is provided “as is”, “as available”, and for informational purposes only, speaks only to events or circumstances on or before the date it is presented, and should not be construed as advice, a recommendation, or a guarantee of future results. AEP Energy disclaims any and all liabilities and warranties related hereto, including any obligation to update or correct the information herein. Summaries and website links included herein (collectively, “Links”) are not under AEP Energy’s control and are provided for reference only and not for commercial purposes. AEP Energy does not endorse or approve of the Links or related information and does not provide any warranty of any kind or nature related thereto.