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Maryland Gov. Moore joins Pennsylvania in calling on grid operator PJM to lower energy prices

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BALTIMORE – Maryland Gov. Wes Moore joined Pennsylvania Gov. Josh Shapiro in calling on grid operator PJM Interconnection LLC to take action to prevent energy cost increases.

In a letter sent last week, Gov. Moore asked PJM to adjust its capacity rules to prevent rate hikes. He further shared concerns about the rising energy costs for residents and business owners across the state. 

"We are respectfully asking that PJM take additional action consistent with our energy laws and policies and in the best interest of our constituents—especially in the midst of rising costs nationwide," Gov. Moore said. 

According to the governor, the capacity market ensures that enough electricity is available to meet demand. The grid operator uses a competitive auction process that allows power suppliers to bid to provide capacity for future years. 

The governor said the 2025/26 auction cleared record-high prices that were driven by a lack of new generation to meet growing demand. 

In 2022, PJM implemented a "freeze" that prevented new projects from coming online until a backlog was cleared, Gov. Moore said. 

Pennsylvania Gov. Shapiro filed a complaint against PJM citing flaws in the design of the auction that threaten to bring significant price increases. In his letter, Gov. Moore expressed support for Gov. Shapiro's complaint. 

Gov. Shapiro requested a temporary modification to the auction price cap until new generation could be added to the grid. 

PJM responds

In a statement shared with WJZ, a spokesperson with PJM said leaders have accepted an invitation to discuss the complaint and reach a resolution. 

"Gov. Moore joined with PA Governor Shapiro in sending a letter.  PJM is always willing to speak with its stakeholders, and so PJM has accepted the invitation to discuss the Complaint and a resolution. 

In the complaint, the Governor has asked for a different price cap formula to be applied and so that concept has been part of our discussions, along with the possibility of a price floor.

We have been clear that a cap and a floor have to be workable to ensure reliability, incentivize new build and preserve investor confidence in the market; the Administration agrees that these are important considerations along with the concerns around consumer costs that they've cited in their complaint – a concern that PJM also shares.

We want to make sure that our Members and other stakeholders are aware of these developments and discussions. We would expect to have additional conversations with the members."

Utility prices on the rise

Baltimore area residents recently shared their concerns as gas, electric and water bills increase. 

In mid-January, the Baltimore Department of Public Works (DPW) approved a plan to increase water and sewer rates over three years. A 3% increase in water rates and a 15% increase in sewer rates would be implemented on Feb. 1. Rates would go up by 9% in FY26 and FY27. 

DPW officials said the increases are necessary to maintain the city's financial stability and infrastructure. 

Some BGE customers also saw extreme increases in their electric bills in January, with some reporting they were billed $200 more than in their previous bill. 

According to BGE officials, the increases are to be expected during the first six months of the year. 

Officials urged residents to drop the temperature on their thermostats and adjust their water heaters to 120 degrees to save money. 

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