PJM Extends Price Cap, Promising Billions in Savings for Energy Consumers

Marylanders and millions of others across the PJM Interconnection region are set to benefit from an estimated $27 billion in savings on their electricity bills, thanks to a decision by the PJM Board of Managers to extend a crucial price cap. This development, announced by Governor Wes Moore’s office, builds upon ongoing efforts to mitigate rising energy costs and ensure the reliability of the power grid. The extended price collar, set to remain in effect through the end of the decade, aims to shield consumers from volatile price spikes while longer-term market adjustments are put in place.

The decision by PJM, the regional grid operator, follows significant advocacy from Governor Moore and a coalition of thirteen other governors. Their collective push urged PJM to take action to protect households and businesses from unpredictable rate increases. This extension is anticipated to provide substantial financial relief to approximately 67 million individuals across the PJM territory. When combined with savings achieved through previous interventions supported by the Governor, the total projected regional savings now amount to an estimated $45 billion.

Governor Moore’s office highlighted the importance of this decision in prioritizing the needs of everyday citizens. The administration has emphasized that decisions impacting household budgets should be made with consumer interests at the forefront, rather than solely benefiting corporations and their shareholders. By maintaining the price cap, the state aims to prevent billions in unnecessary expenses from being passed on to residents, thereby alleviating the pressure on families who may otherwise face difficult choices between essential utilities and other household needs.

The Maryland Energy Administration Director has noted that the extension of the price cap is a significant stride in protecting Maryland residents from continuous price hikes. The existing price cap has already contributed to billions in consumer savings. The continued success in advocating for such measures is expected to further ease the financial burden on Marylanders’ electricity expenses. However, the administration acknowledges that efforts to ensure affordable energy access for all residents will continue, especially as regional and national electricity demand, driven by large consumers like data centers, is experiencing unprecedented growth.

This announcement represents a key achievement in Governor Moore’s comprehensive strategy focused on energy affordability and grid reliability within Maryland. This strategy encompasses several key areas. Through regional collaboration and federal advocacy, Governor Moore joined a bipartisan group of governors and the White House in January 2026 to endorse a statement calling for the extension of the price cap. This was preceded by direct engagement with the PJM Board to encourage the adoption of cost-saving measures.

In addition, executive action has been a cornerstone of the Governor’s approach. In December 2025, Governor Moore signed an executive order directing a government-wide effort to address a projected electricity generation gap and prioritizing alternative solutions to costly infrastructure projects. Legislative reform is also underway, with the introduction of the Lower Bills and Local Power Act. This proposed legislation aims to allocate nearly $200 million for direct energy bill rebates to families, modernize the grid to reduce congestion-related costs, and encourage local clean energy production.

These initiatives build upon existing relief measures, such as the Next Generation Energy Act, which has already authorized $200 million in direct assistance for Maryland ratepayers. Furthermore, the Public Service Commission has announced new discounted energy rates for low-income Marylanders, slated to take effect by 2027. The administration is also addressing the impact of large energy consumers like data centers. Governor Moore recently outlined a framework for responsible data center development, requiring developers to secure their own new generation sources, hire and train local workers, and obtain local community support. This initiative aligns with ongoing work at the Public Service Commission to establish a new rate class for large-load customers, ensuring that data centers cover their own operational costs.

Governor Moore stated that the development of a 21st-century economy necessitates a power grid that is reliable, affordable, and responsive to the needs of its users. While the price cap offers crucial immediate protection, the administration is committed to sustained efforts to accelerate power generation and prevent Marylanders from bearing the burden of escalating energy costs. The PJM Board has indicated that it will submit the necessary amendments to the Federal Energy Regulatory Commission (FERC) in the near future to ensure the price collar is implemented for the upcoming 2028/2029 auction.

Article by Mel Anara, based upon information from the Office of Governor Wes Moore

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