PJM’s Coal Bias Is Giving Us Pollution, High Electric Bills

Op-Ed by Jake Schwartz, CCAN Federal Campaigns Manager, initially published in the Bay Journal.

Your electricity bill is going up again. And no, it’s not just inflation. A big part of the problem is PJM Interconnection, the federally regulated but largely independent grid operator that controls the flow of power to 65 million people across 13 states and the District of Columbia. Instead of embracing cheaper, cleaner energy, PJM has clung to its fossil fuel biases, and we’re all paying the price.

Every year, PJM holds a “capacity auction” that determines how much consumers will pay to guarantee electricity for future years. On Sept. 1, electric bills increased as a result of the 2024 capacity auction. And earlier in the summer, when PJM released the 2025 auction results, households across much of the region learned that their bills would go up once again in 2026. The blame doesn’t rest on abstract market forces; it rests on PJM’s refusal to prioritize connecting clean energy to the grid.

Pennsylvania Governor Josh Shapiro delivers remarks
Pennsylvania Governor Josh Shapiro

At a moment when new renewable technologies promise abundant, low-cost and reliable power, PJM has allowed the grid to stagnate. Instead of connecting the countless clean energy projects that have been stuck in a decade-long queue, PJM has fast-tracked fossil fuel plants, mostly gas-fired, to jump this very same line. This is not just bad for the environment. It’s also a direct hit to our wallets. Oil and gas prices are volatile. Coal plants are aging, inefficient and costly. Yet PJM seems determined to double down on fossil fuels, forcing consumers to pay more.

Recent pushback from politicians, led by Pennsylvania Gov. Josh Shapiro, has successfully convinced PJM to institute a price cap, putting a limit on how high consumer prices can be. In states like Maryland and Virginia, customers served by BGE and Dominion Energy may pay less next year thanks to this pro-consumer response — but it is only a temporary solution, and the rest of the region will face higher costs. Pushback at the state level, however, shows that PJM’s policies can be challenged. Political leaders can successfully fight for reforms that help our pocketbooks.

In Maryland, prices are rising for another reason as well. Earlier this year, as the Chesapeake Bay Journal reported in its April issue, PJM mandated that two coal plants had to remain online even though their owners wanted to retire them. Stuck with its fossil fuel-centric worldview, PJM saw no alternative to meet energy demand than to keep inefficient coal plants online past their retirement date. Because coal is so expensive, this decision will cost some Marylanders up to 24% more per month, according to RTO Insider. This is nothing but a subsidy for highly polluting, uneconomical coal plants, imposed on consumers who had no say in the process.

Air photo of Brandon Shores Generating Station in Anne Arundel County, Maryland, near Baltimore. View facing north.
Air photo of Brandon Shores Coal Plant in Anne Arundel County, Maryland, near Baltimore.

The bitter irony is that PJM’s barriers to clean energy are self-inflicted. More than 3,000 renewable energy projects are currently waiting in PJM’s queue, according to Inside Climate News. If even a fraction were given the green light, consumers could see significant long-term price relief. Wind and solar are now cheaper than coal and gas in most of the country. Battery storage, once a futuristic concept, has rapidly scaled to make those renewable resources reliable around the clock. But as long as PJM keeps its thumb on the scale for fossil fuels, the grid will remain more expensive and less resilient than it should be.

Despite these challenges with PJM, reforms are being discussed. For the first time in decades, this fall PJM filled two board seats and will appoint a new CEO. New leadership could finally bring PJM into the 21st century, prioritizing clean energy integration and consumer affordability. Or, if fossil fuel interests fill the seats, we could see more of the same: higher bills, higher emissions, and fewer options for customers.

This winter, PJM will revisit what it calls the Reliability Must Run rule, the provision that forced the Maryland coal plants to stay online — and could do the same elsewhere. The stakes could not be higher. This isn’t about something abstract. It’s about being able to afford to keep the lights on. Consumers and elected leaders across the region must make it clear that we can never again be required to pay more for electricity to keep old coal plants online.

Unfortunately, even the reform process itself has been shaky. While there were a series of task force meetings scheduled over the summer to discuss PJM reforms, many were cancelled without explanation. It seems clear that PJM is sticking to the energies of the past while the energy prices of the future are only going up. PJM may control the levers of our grid, but ultimately, the public pays the bill. We have to make PJM care.

Op-Ed by Jake Schwartz, CCAN Federal Campaigns Manager, initially published in the Bay Journal.

About the author:

Jake Schwartz (he/him) is the Federal Campaigns Manager at CCAN. Jake grew up in Philly (Go Birds!) and has organized on environmental and electoral campaigns across the country, from Oregon to Indiana. His career in climate organizing began at Green Corps, an environmental advocacy fellowship, where he worked on local, state, and federal campaigns.

Most recently, he was on the Harris-Walz campaign where he helped run the Delegate Operations and then Climate Engagement teams. Outside of work, you can find him running or biking in Rock Creek Park or reading at Meridian Hill Park.

photo of the author of the blog, Jake Schwartz

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.