ANNAPOLIS, Md. — Governor Wes Moore announced this week that results from the PJM Interconnection’s 2028/2029 Base Residual Auction secured significant savings for ratepayers across the multi-state region, including Maryland, after the state helped implement a capacity market price cap.
The auction secured more than 138 gigawatts of generation to meet projected demand across PJM’s footprint, which includes Maryland, 12 other states and the District of Columbia. The clearing price settled at the administrative cap of $325 per megawatt-day, preventing an estimated $13.3 billion in excess costs that would have flowed through to utility bills.
“Our administration refuses to allow corporations to pad their pockets while Marylanders shoulder the cost with no return on investment,” Moore said. “These savings are a direct result of our aggressive actions to make energy more affordable and put money back in the hands of hardworking families across our state – because no one should have to choose between paying their electricity bill and putting food on the table.”
The governor joined a coalition of PJM-state governors earlier this year calling for urgent reforms to address rising energy costs fueled by explosive data center growth. In May, Moore addressed PJM executives directly at their annual meeting, urging greater accountability. A December 2025 executive order further emphasized energy affordability and generation shortfalls.
Maryland Energy Administration Director Kelly Speakes-Backman highlighted the importance of state intervention. “Yesterday’s result demonstrates why state action is necessary to manage regional energy prices,” she said. “We know that more still needs to be done as Marylanders face high energy bills this summer. That’s why we’re incentivizing new generation resources, modernizing the grid, and supporting energy efficiency for homes and businesses — even as we call for these PJM reforms, which will insulate against high costs and help control them in the first place.”
The Moore-Miller administration has prioritized energy affordability through multiple initiatives. Landmark legislation including the Utility RELIEF Act is projected to reduce residential electric and gas bills by hundreds of dollars annually. Additional efforts include $200 million in direct rebates last year, $100 million through the Utility RELIEF Act, a $100 million clean energy auction for new generation, reforms shielding ratepayers from data center impacts, and removal of unjustified utility incentives saving $20 million yearly.
Southern Maryland residents, served by utilities like SMECO, stand to benefit from these regional and state-level actions amid ongoing summer demand and broader grid pressures. The administration continues working to balance reliability, affordability and clean energy goals in a region experiencing rapid growth.
PJM’s capacity market is designed to ensure long-term resource adequacy. The price cap, secured through gubernatorial advocacy, prevented steeper increases that could have exacerbated bills for families and businesses already navigating high energy costs.
MEA continues implementing General Assembly-passed measures while advocating for further PJM reforms. Maryland ranks among the most proactive states on energy affordability in 2026.
