Annapolis, MD – Governor Wes Moore is urging PJM Interconnection LLC, the grid operator for Maryland and several other states, to adjust its capacity market rules to prevent unnecessary electricity cost increases for Maryland residents and businesses. In a letter to PJM’s Board of Managers last week, Governor Moore emphasized the need for action to address rising energy prices and called for the price cap to be lowered ahead of the delayed 2026/2027 capacity auction, now scheduled for June.
“At a moment when Marylanders are feeling the squeeze of high prices, we are working with our allies across the region to help keep costs down,” Governor Moore said. “Maryland has long called on PJM to bring new clean energy resources onto the system quickly to ensure the reliability and resilience of the electric grid, in service of connecting Marylanders with affordable energy. We are respectfully asking that PJM take additional action consistent with our energy laws and policies and in the best interest of our constituents—especially in the midst of rising costs nationwide.”
Maryland’s Energy Affordability Crisis
Maryland ratepayers are bracing for the highest utility bills in the state’s history. The electricity capacity prices approved by PJM last summer will begin appearing on household bills this month, creating significant financial strain for residents. This spike is being driven by a combination of poor transmission grid planning and skyrocketing capacity auction prices.
Adding to the issue, gas utilities are increasing spending on costly infrastructure projects through programs like the Strategic Infrastructure Development and Enhancement (STRIDE) program. While STRIDE enables utilities to recover the costs of pipeline repairs and replacements, it does not incentivize cost efficiency, leaving Marylanders to shoulder ballooning expenses. Critics argue the state is overspending on an infrastructure system that is quickly becoming obsolete as more households transition to all-electric heaters and appliances.
Transmission Grid Challenges and Rising Capacity Prices
Maryland is also facing difficulties connecting new large-scale energy projects to the transmission grid due to poor planning by PJM. A severely backlogged interconnection queue is preventing new energy projects from being added to the grid, restricting supply, and driving up prices.
Electricity capacity prices in the PJM region have already risen significantly. With another auction scheduled in the coming months, Marylanders are concerned about further increases.
Multi-State Efforts to Address Price Hikes
Last week, Pennsylvania Governor Josh Shapiro filed a complaint with the Federal Energy Regulatory Commission (FERC), citing flaws in PJM’s capacity auction design that could impose even more significant price increases on customers. The complaint requests a temporary modification to the auction price cap while reforms are implemented to address the backlog and add new energy resources to the grid.
Governor Moore expressed strong support for Pennsylvania’s complaint in his letter to PJM and has joined Illinois Governor J.B. Pritzker, former Delaware Governor Bethany A. Hall-Long, and New Jersey Governor Phil Murphy in sending a joint letter to FERC. The multi-state letter calls for immediate action to adjust the price cap and prevent energy prices from reaching “unjust and unreasonable” levels.
Advocating for Affordable, Reliable, and Clean Energy
Governor Moore’s efforts reflect Maryland’s commitment to clean energy and affordability. By advocating for reforms to PJM’s capacity market rules, the state seeks to balance the need for reliable electricity with the goal of maintaining reasonable costs for residents.
Maryland residents and businesses are encouraged to stay informed about developments in the capacity market and energy pricing. For more information on Maryland’s energy policies, visit the Maryland Energy Administration’s website.
