Maryland Electricity Bills Stay High as PJM Auction Drives Prices Up Again

Advocates criticize grid operator for failing to connect clean energy, praise Maryland leaders for mitigating increase 

BALTIMORE, MD – PJM, the grid operator responsible for keeping the lights on in 13 Mid-Atlantic and Midwestern states plus the District of Columbia, has shared the results of its most recent capacity auction. Prices are already spiking across the PJM region due to the results of last year’s auction, and yesterday’s results confirm that rate relief is at least two years away. According to PJM, the price cap that was negotiated by Governor Shapiro (PA), in conjunction with Gov. Moore and other governors, substantially lessened this year’s increase.

Governor Wes Moore, multiple state agencies, and members of the Maryland General Assembly have pushed back on PJM for flaws in its rate-setting process and failure to connect clean energy projects to the grid. Most recently, Gov. Moore joined a bipartisan group of Governors calling on PJM to make policy changes to mitigate skyrocketing electric supply rates. 

In a functioning capacity market, prices rise in response to low energy supply, incentivizing the development of new power sources to meet demand. As of April 2024, PJM had 286.7 gigawatts (GW) of backlogged proposed energy projects waiting for PJM’s approval to be connected to the grid – enough to power roughly 228 million homes for a year. More than 90% of these projects are clean energy like wind, solar, and battery storage, fueling criticism that PJM is standing in the way of new clean energy. A recent analysis found that if PJM increased the speed at which it allows new projects to connect to the grid, it would save individual households at least $500 a year. 

While PJM’s slow processes have limited Maryland’s ability to build new energy projects, Maryland lawmakers took action in 2025 to speed up the deployment of batteries and solar power in the state once projects receive PJM’s approval. This bold step proves legislators’ commitment to advancing clean energy in spite of the logjam.

However, PJM’s bias toward fossil fuels is still hurting Marylanders. Maryland energy customers will be particularly hard hit by the 2024 PJM auction results, due in large part to PJM’s decision not to credit the energy produced by two active coal plants, a decision that increased bills in the BGE and PEPCO region by an estimated $5 billion. Supply rates will rise towards the end of the summer and are expected to increase up to 25% for some customers. After pushback from consumer advocates, PJM reversed course on that policy decision, adjusting its auction rules as related to the plants for yesterday’s auction.

Increases in electric supply rates have exacerbated rate pain for Marylanders who have already been struggling with the high utility delivery charges. Subsidiaries of the Exelon Company, including BGE, PEPCO, and Delmarva Power, increased delivery rates for gas and electricity at a rate far outpacing inflation. During the 2025 legislative session, the Maryland General Assembly made several changes to utility ratemaking policies, which are expected to slow the rate of increase when implemented by the Maryland Public Service Commission.

“As someone who has advocated for PJM reforms that would allow for clean energy projects to connect to the grid, it is disheartening for another capacity market auction to punish ratepayers for PJM’s slow walking of new clean energy projects. PJM continues to be unwilling to implement reforms at a pace that would bring prices down,” said State Delegate Lorig Charkoudian.

“We’re counting on PJM and state utilities to get their act together and ensure access to affordable and reliable electricity,” said Maryland PIRG Senior Advisor Emily Scarr. “To reach that goal, they need to stop blocking clean energy, and stop gaming the rules to benefit fossil fuel and utility companies at the expense of the public. A competitive market won’t benefit customers any other way.” 

“Our regional electric grid remains overly dependent on unreliable and volatile fossil fuels,” said State Senator Benjamin Brooks. “PJM must take decisive action to accelerate the integration of solar energy and battery storage in order to stabilize the grid, reduce pollution, and lower energy costs for ratepayers.”

“These high prices are not serving as signals for new clean energy projects due to PJM’s backlog. Ratepayers should not suffer due to outdated policies and practices. I appreciate Governor Moore and the Maryland General Assembly for advocating for reforms. PJM must respond to continued collaboration and advocacy from the diverse group of stakeholders, paying close attention to this issue,” said Brittany Baker, Maryland Director of Chesapeake Climate Action Network.

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Chesapeake Climate Action Network is the first grassroots organization dedicated exclusively to raising awareness about the impacts and solutions associated with global warming in the Chesapeake Bay region. Founded in 2002, CCAN has been at the center of the fight for clean energy and wise climate policy in Maryland, Virginia, and Washington, DC.

Cheating the System: How PJM’s Bias Against Clean Energy Hurts Us All

A blog by Jake Schwartz, CCAN’s Federal Campaigns Manager. 

PJM is cheating. As the nation’s largest regional transmission organization (RTO), with a responsibility to manage and oversee the transmission grid, the Pennsylvania-New Jersey-Maryland Interconnection (PJM) has a responsibility to deliver reliable and affordable energy to regional consumers. No energy is more infinite than that from the sun and wind. Despite this, PJM is prioritizing fossil fuel plants, cheating us out of cheaper clean energy options.  

The Cost of PJM’s Fossil Fuel Dependence

PJM’s costs are skyrocketing and the reason why is clear: fossil fuels are unreliable. While PJM prioritizes future natural gas plants, already-approved clean energy projects are still waiting for interconnection to the electricity grid. The grid works best when PJM can plan years in advance how future energy needs are going to be met; if there’s unreliability, then they have to tap into additional resources, which costs more. While winter disruptions and other infrastructure issues are making fossil fuels more expensive than expected, clean energy is as cheap as ever. They’re prioritizing the wrong thing. 

In February 2025, the much-anticipated Brattle Report, commissioned by a conservative group, determined that prioritizing clean energy will result in more reliability for the grid. We cannot afford the status quo. Cheaper clean energy projects that would lower costs are ready to go – PJM just has to approve their connection to the electricity grid. We’re calling on them to act now. 

 

Delays in Clean Energy Integration

PJM has been delaying the interconnection of clean energy projects while fast-tracking fossil fuel plants in the queue, causing more unreliability. Between 2012 and 2022, PJM added three times more fossil fuel capacity than renewables, a stark contrast to other RTOs that are rapidly integrating clean energy. Over 2,200 renewable energy projects in PJM’s queue have been waiting for years to connect to the grid. This backlog includes enough clean energy capacity to power millions of homes.

Source: Brattle Economic Analysis of Clean Energy Tax Credits Report

Connecting these clean energy projects is more than just the right thing to do for their consumers; it is required by the Federal Energy Regulatory Commission (FERC). FERC Order 1920 requires RTOs like PJM to comprehensively plan for the future, including factoring in a high usage of renewables into their scenario planning. PJM is pushing back and trying to get off the hook for even just planning with clean energy; they seem to be in denial that the future of electricity here in the Chesapeake region is green. 

Debunking PJM’s Flawed Reasoning

RTOs say that American energy consumption is projected to increase significantly by 2050, driven in large part due to new data centers for AI, and that they need fossil fuels that produce electricity 24/7 instead of just when the sun is shining to meet this demand. This is flawed reasoning for multiple reasons. With more efficient data centers and AI models coming out every year, PJM’s energy projections will likely be an overestimate, again. The release of the AI model DeepSeek, which uses ten times less energy than ChatGPT, is proof that our future energy appetite is not insatiable. 

However, even if energy demand does spike, clean energy would still be the economical choice for supply. When paired with battery storage, utility-scale solar and offshore wind is cheaper, more reliable, and limitless, while fossil fuel plants cost more, take longer to build, and are inherently a finite resource. Battery storage can also ramp up much faster than gas plants, making them ideal for grid stability. With sufficient storage, solar can cover energy peaks far more easily than so-called gas peaker plants (the dirtiest kind of gas plant), removing the need to prioritize fossil fuels at all. 

Right now, clean energy developers are building all over the East Coast. PJM needs to overcome its institutional bias of the energies of yesterday and prioritize the electricity of tomorrow – connecting them to the grid now instead of letting gas plants cut the queue – to guarantee the cheaper, cleaner energy future that we all deserve. 

A Call for Change: Get Involved and Advocate for Clean Energy

Friends of Chesterfield Community Meeting on Dominion’s Peaker Plant Thursday, Feb 27, 2025

State governments within PJM’s jurisdiction are already pushing for change by creating voluntary forward clean energy markets to meet their climate goals. There are other actions that governors can take as well. In Pennsylvania, Governor Shapiro worked with PJM to settle a lawsuit and lower the capacity auction price cap by over 20%, averting a runaway auction price that would have unnecessarily increased energy bills. In all, this move by the governor saved consumers $21 billion over two years. 

As PJM electricity rates are expected to rise in June 2025, there is no reason other governors can’t do the same and help lead the clean energy transition, saving their constituents billions in the process. Join the fight for clean energy and against rising utility costs by becoming part of CCAN’s state-based action teams. Together, we can push for reforms that prioritize renewable energy projects, hold PJM accountable, and ensure a sustainable and affordable energy future for all.     

Become an Action Team Member Today!

A blog by Jake Schwartz, CCAN’s Federal Campaigns Manager.