ANNAPOLIS, MD—Maryland Governor Wes Moore has joined Pennsylvania Governor Josh Shapiro in urging regional grid operator PJM Interconnection LLC to make changes to its capacity market rules in order to safeguard Maryland ratepayers from potential electricity cost spikes.

In a letter (PDF) sent to the PJM Board of Managers last week, Moore reiterated concerns about rising energy costs for Maryland residents and businesses, and urged PJM to lower the price cap ahead of its 2026/2027 capacity auction, which is currently delayed until June.

The capacity market is designed to ensure an adequate supply of electricity to meet demand by utilizing a competitive auction process where power suppliers bid to provide capacity for future years. The results of the 2025/2026 auction saw record-high prices, largely due to a shortage of new generation projects to meet increasing electricity demand and the decommissioning of existing energy assets.

In 2022, PJM implemented a moratorium on new generation projects, effectively preventing them from coming online until a reform process to clear the backlog of projects is complete. This has further exacerbated the issue and contributed to the recent surge in energy prices.

Governor Moore emphasized the need for PJM to take action that aligns with Maryland’s energy laws and policies, prioritizing the best interests of constituents, especially during a period of nationwide inflation and rising costs.

“At a moment when Marylanders are feeling the squeeze of high prices, we are working with our allies across the region to help keep costs down,” said Governor Moore. “Maryland has long called on PJM to bring new clean energy resources onto the system quickly to ensure the reliability and resilience of the electric grid, in service of connecting Marylanders with affordable energy. 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.”

Pennsylvania Governor Josh Shapiro filed a complaint with the Federal Energy Regulatory Commission (FERC) last week, specifically citing flaws in the capacity auction design that could lead to significant price increases. Shapiro requested a temporary modification to the auction price cap until reforms are implemented to add new generation projects to the grid.

Governor Moore voiced support for Pennsylvania’s action, citing concerns about affordability, reliability, and capacity. He also joined Illinois Governor J.B. Pritzker, former Delaware Governor Bethany A. Hall-Long, and New Jersey Governor Phil Murphy in sending a multi-state letter to FERC supporting Pennsylvania’s complaint.

The letter requests a temporary modification to the price cap to prevent prices from reaching unjust and unreasonable levels. This change would give the market time to adjust to PJM’s amended rules and address the interconnection queue backlog.

The full letter can be viewed online here (PDF).

This article was written with the assistance of AI and reviewed by a human editor.

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