Maryland lawmakers say PJM drives soaring bills, as FERC weighs giving states more say

Electricity costs in Maryland have been rising faster than in much of the country, but state lawmakers say the charges drawing public anger are largely driven by forces they do not directly control.

Federal regulators are now weighing whether states such as Maryland should have a much larger role in decisions made by the regional grid operator connected to many of those costs.

What's happening?

At a Thursday conference, the Federal Energy Regulatory Commission focused on whether PJM Interconnection, which runs the grid for Maryland and 12 other states, is structured to handle fast-changing power demand, according to The Baltimore Sun.

The scrutiny follows a punishing period for Maryland ratepayers. This month's capacity auction hit record levels after forecasts showed electricity use climbing quickly, in part because of new data centers, while older plants were retiring and newer energy projects were having trouble getting connected to the grid.

Because those wholesale power increases are passed along to utilities and then to customers, they eventually show up in monthly bills.

State Senator Katie Fry Hester, who chairs the Senate Energy Subcommittee, described the political reality plainly: "When electricity bills go up, our constituents don't call PJM. They call us."

FERC Chair Laura Swett said federal regulators may take stronger steps if PJM does not advance reforms by September.

Why does it matter?

For households already burdened by housing, food, and transportation expenses, rising electric bills can force painful tradeoffs.

When power prices surge, families are often left paying for decisions made far from their communities and with little direct public input.

Critics say PJM's decision-making process gives utilities and other market participants outsized sway, even as states and consumers have limited insight into choices that affect affordability.

When renewable energy and battery storage projects face interconnection delays, cheaper and cleaner power stays off the system longer, leaving people more dependent on older, higher-cost sources.

Delegate Lorig Charkoudian said, "Here we have a solution to reliability, a solution to carbon emissions and a solution to affordability. And we are undermined in our ability to put that online because of PJM rules."

What's being done?

Maryland lawmakers and officials from several states are pressing FERC to order changes at PJM, including a stronger voice for states, a more independent board, and more transparency. Supporters say that could bring grid decisions into better alignment with reliable electricity at a manageable cost.

In comments to The Baltimore Sun, PJM said it welcomes the review.

"We appreciate FERC convening," spokesperson Daniel Lockwood said. "PJM has long supported continuous improvement, and we recognize that our governance and stakeholder processes should evolve as the electric system evolves."

Consumer and climate advocates also want the public to have a larger say.

Emily Scarr of Maryland PIRG said affordability deserves greater weight, while Chesapeake Climate Action Network's Brittany Baker said the grid operator should be anticipating problems before consumers are hit with price shocks.

Even if changes are approved, they would likely take time, so Marylanders may not get immediate relief.

Baker offered a sharper warning: "PJM is supposed to be the entity that has that top-line view of all these issues and rectifies the issues before they become 20%, 30%, 40% increases for ratepayers."

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