Governor Wes Moore announced the Lower Bills and Local Power Act on January 27, 2026, in Annapolis as a core element of the Moore-Miller Administration’s 2026 legislative agenda. The proposal targets rising utility costs for Maryland families by mobilizing nearly $200 million from the Strategic Energy Investment Fund, which collects Alternative Compliance Payments from utilities, to fund direct rebates, grid modernization, and local clean energy generation.
The legislation advances Moore’s Building an Affordable and Reliable Energy Future executive order from December 2025. It rests on three main pillars: direct financial relief for ratepayers, upgrades to transmission infrastructure, and expansion of in-state clean energy projects.
Direct relief includes $100 million for a new round of utility bill rebates, set for administration this fall. These payments supplement the $200 million in electricity bill rebates provided in 2025 through the Next Generation Energy Act. The rebates aim to ease immediate burdens from escalating energy prices affecting households statewide.
For infrastructure modernization, the act requires utilities to prioritize advanced transmission technologies and grid-enhancing technologies before pursuing new transmission lines. These tools boost capacity and efficiency on existing lines, enhancing reliability without extensive new construction. Utilities must submit plans incorporating such technologies for Public Service Commission approval on new lines.
The proposal allocates $10 million to the Maryland Department of Transportation to identify sites for high-voltage transmission lines and battery storage along state and interstate highways. Using existing right-of-way streamlines deployment by avoiding lengthy land acquisition and permitting delays, accelerating improvements to statewide grid reliability.
Maryland Department of Transportation Acting Secretary Katie Thomson stated support for the effort. “The Maryland Department of Transportation is a proud partner and supporter of the Moore-Miller Administration’s efforts to modernize the state’s energy grid and lower energy costs,” Thomson said. “With Governor Moore’s Lower Bills and Local Power Act, I look forward to the continued collaboration with our state energy partners, doing what the Department does best—finding practical solutions that keep Maryland moving toward a more affordable, sustainable future.”
To boost local generation, the act creates the Solar and Energy Storage Gap Financing Program under the Maryland Energy Administration. The program invests $70 million to support clean energy projects, offsetting financial risks from federal Investment Tax Credit reductions tied to recent national policy changes.
Maryland Energy Administration Director Kelly Speakes-Backman emphasized the administration’s priorities. “The Moore-Miller Administration is committed to moving as quickly as possible to a more affordable, reliable, clean energy system,” Speakes-Backman said. “Governor Moore’s legislation introduced today, his budget, and the executive order issued in December all aim at addressing rising energy costs for working families, making sure the lights stay on, and moving us on a path to clean energy.”
Additional measures include eliminating a 0.5% utility incentive that permits extra profits and requiring all utilities to participate in PJM Interconnection, the regional transmission organization. PJM membership promotes coordinated grid planning and accountability, with projected annual savings of tens of millions for Maryland ratepayers.
Maryland Public Interest Research Group Senior Advisor Emily Scarr noted potential benefits. “In the face of rapidly rising utility bills, our state leaders need to scrutinize every cost that is being charged to ratepayers,” Scarr said. “Gov. Moore’s proposal to require utility participation in regional grid planning and management will save Maryland utility customers twenty million dollars a year.”
Environmental groups endorsed the approach. League of Conservation Voters Maryland Executive Director Kim Coble said the financing for shovel-ready solar and storage projects ensures accountability and cost-effective energy sources. Maryland Sierra Club Director Josh Tulkin highlighted synergies. “Governor Moore understands that we can reduce utility bills, create a stable electricity grid and pursue our climate goals all at once,” Tulkin said. “Solar, storage, advanced transmission technologies, demand response and better grid management, can reduce peak load and save money and energy. We look forward to working with the Governor and General Assembly on accelerating these win-win common sense strategies.”
The proposal extends 2025 actions by the Moore-Miller Administration, including the executive order, $200 million in rebates, and over $130 million invested in clean energy and modernization programs such as county energy upgrades and the Decarbonizing Public Schools Program.
“Energy policy is about more than megawatts and transmission corridors—it is about whether Maryland families can afford to live in their homes,” Moore said. “That’s why our administration is stepping up to deliver real relief, focusing on driving down the cost of utility bills for Marylanders, and investing in local projects that make energy more reliable and affordable.”