PJM price cap extension through 2030 projected to save region $27B, Gov. Moore says

MARYLAND (WBFF) — Marylanders and other electricity customers across the PJM Interconnection region could see billions in savings after PJM’s Board of Managers voted to extend a capacity market price cap through 2030, Gov. Wes Moore announced.

The extension, backed by Moore and a bipartisan group of 13 governors, is projected to save $27 billion for 67 million people across the region. Combined with earlier measures, total estimated savings reach $45 billion.

Moore said the decision will help protect families and businesses from volatile rate hikes while longer-term energy reforms move forward.

“For too long, the personal impact on the people and families we represent has taken a back seat at PJM to the interests of companies and their shareholders,” Moore said. “This decision highlights why decisions impacting the people’s lives and wallets must be made with us, not at us. By extending this price cap, we are preventing billions in unnecessary costs from being passed down to our residents, ensuring that we don’t have to choose between keeping the lights on and making ends meet.”

ALSO READ | Maryland PSC advances plan to auto-apply utility discounts for income-eligible customers

Maryland Energy Administration Director Kelly Speakes-Backman called it a major step toward shielding residents from rising electricity costs, though officials said more work is needed as demand grows, particularly from data centers.

The move is part of Moore’s broader energy strategy. In recent months, he signed an executive order aimed at closing a projected generation gap, introduced the Lower Bills and Local Power Act to provide nearly $200 million in rebates and support grid upgrades, and built on the previously passed Next Generation Energy Act, which authorized $200 million in ratepayer relief. State regulators also announced new discounted rates for low-income customers set to take effect by 2027.

Moore has also proposed new requirements for data center development, including bringing new power generation and covering related costs, to ensure reliability and affordability.

“We are building a 21st-century economy, and that requires a grid that is reliable, affordable, and responsive to the people it serves,” Moore said. “While this price cap provides critical immediate protection, we will not let up. My administration will continue pushing for the changes needed to bring more power online faster and ensure Marylanders aren’t shouldering the burden of higher costs.”

PJM said it will file amendments with federal regulators to keep the price cap in place for the 2028/2029 auction.