Maryland Governor Advocates for Continued Energy Cost Protections from Regional Grid Operator

The State of Maryland is urging federal regulators to maintain crucial price controls on energy auctions, a move it asserts will protect residents and businesses from excessive electricity costs. The Maryland Energy Administration has officially voiced its strong backing for a proposal by PJM Interconnection, the regional grid operator responsible for ensuring a reliable electricity supply, to extend existing capacity auction price caps and floors. This initiative aims to provide a financial safety net against significant market fluctuations while Maryland pursues its own strategies to lower energy expenses for consumers.

The proposed extension by PJM Interconnection, submitted to the Federal Energy Regulatory Commission (FERC) in late February 2026, seeks to keep the capacity auction price cap at approximately $325 per megawatt-day. This measure, often referred to as a “price collar,” is intended to prevent extreme volatility and prevent sharp increases in energy prices within the PJM market. Maryland’s support follows direct engagement from Governor Wes Moore and other governors within the PJM service area. The Maryland Energy Administration, in its commentary to FERC, highlighted the potential impact of removing this cap, noting that without it, a hypothetical auction in April 2025 would have seen costs jump by 60%, directly burdening ratepayers already grappling with escalating energy expenses.

Governor Moore has been vocal about the impact of these capacity market auction costs on Marylanders, describing them as “unjust and unacceptable.” He views the price cap extension as a practical and effective means of safeguarding state residents while the administration continues to develop and implement a broader strategy to combat rising energy costs. The extension would provide ongoing protection while the state works towards more permanent solutions.

Maryland Energy Administration Director Kelly Speakes-Backman emphasized the necessity of cost-containment measures like the price cap as the state actively works to encourage greater deployment of energy generation and storage. She stated that these protections are essential for shielding Marylanders from abrupt rate increases. Since its initial implementation, the price collar has been instrumental in preventing what the administration considers unjust and unreasonable capacity costs. Its continuation is deemed vital for Maryland as it implements a multi-faceted approach to address the state’s energy future, encompassing short, medium, and long-term solutions.

This advocacy is part of a larger coordinated effort to reform the PJM Interconnection capacity market. Earlier in the year, Governor Moore joined other PJM governors at the White House to sign a Statement of Principles. This agreement outlined a joint strategy focused on incentivizing new power generation, protecting residential customers from price hikes, and ensuring that significant energy consumers, such as data centers, contribute to the investment in generation infrastructure that their operations necessitate.

In addition to this regional collaboration, Governor Moore has taken executive action to support energy affordability. In December 2025, he issued an executive order aimed at addressing anticipated shortfalls in energy generation and promoting cost savings for consumers. Furthermore, the Governor and leaders within the Maryland General Assembly recently collaborated on a legislative package designed to reduce energy bills for Maryland families by at least $150 annually.

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

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