The Maryland Energy Administration (MEA) has voiced strong support for a February 27, 2026, proposal from PJM Interconnection to extend the current capacity market price cap and floor through the 2029/2030 delivery year. This “price collar” mechanism aims to prevent extreme volatility in PJM’s capacity auctions, protecting Maryland ratepayers from sharp increases in electricity costs amid ongoing efforts to expand generation and storage resources.
PJM filed the request with the Federal Energy Regulatory Commission (FERC) to maintain the cap at approximately $325 per megawatt-day and the floor at about $175 per megawatt-day for the 2028/2029 and 2029/2030 delivery years. The extension builds on prior measures that limited price spikes in earlier auctions. Without such protections, MEA noted that costs from an April 2025 auction would have risen 60% higher, with those expenses passed directly to consumers already facing elevated energy bills.
Governor Wes Moore emphasized the urgency of containing costs. “I have been crystal clear that the costs being passed along to our residents from out-of-control capacity market auctions are unjust and unacceptable,” Moore said. “As we continue to pursue a comprehensive and aggressive strategy for combatting rising energy costs, this price cap represents both a practical and effective way to protect Marylanders. Today’s filing would lengthen the protections we have already secured while we keep fighting for additional long-term solutions.”
MEA Director Kelly Speakes-Backman highlighted the collar’s role as a bridge to broader reforms. “While we work aggressively to encourage more generation and energy storage deployment, and as we look to the most cost effective measures to bring energy costs down, we need cost-containment measures like these to better protect Marylanders from rate spikes,” Speakes-Backman said. “Since its initial implementation, the price collar has helped to protect against unjust and unreasonable capacity costs. Its continuation is essential for Maryland as we implement short, medium, and long term solutions for Maryland’s energy future.”
The proposal responds to surging electricity demand—particularly from data centers—and slower additions of new supply, which have driven capacity prices higher in recent PJM auctions. In prior actions, PJM’s Board extended similar protections through 2030 following advocacy from Moore and a coalition of 13 PJM-state governors, projecting $27 billion in regional savings. Maryland’s support aligns with that coalition effort, including a January 2026 White House Statement of Principles signed by PJM governors calling for market reforms to incentivize new generation while shielding residential customers.
Moore’s administration has pursued multiple avenues to address affordability. In December 2025, he issued an executive order promoting energy affordability and tackling generation shortfalls. In early 2026, legislative leaders collaborated on a package projected to save Maryland families at least $150 annually on energy bills. These steps complement federal and regional advocacy to reform PJM’s capacity market, ensuring reliable supply without disproportionate burdens on ratepayers.
PJM manages wholesale electricity for parts of 13 states and the District of Columbia, including Maryland, where demand growth and resource retirements have heightened cost pressures. MEA’s comments to FERC underscore the need for temporary safeguards as the state advances clean energy deployment, grid modernization, and incentives for local generation to achieve long-term stability and lower costs.