MD Backs PJM Price Cap Extension to 2030

The Maryland Energy Administration (MEA) has officially endorsed PJM Interconnection's proposal to extend the current capacity market price cap and floor through the 2029/2030 delivery year. This "price collar" mechanism, filed with the Federal Energy Regulatory Commission (FERC), seeks to stabilize electricity capacity auctions by maintaining the cap at approximately $325 per megawatt-day and the floor at about $175 per megawatt-day. The MEA argues that these protections are vital to shield Maryland ratepayers from significant increases in electricity costs, citing that without them, costs from a prior auction would have been 60% higher. Governor Wes Moore underscored the administration's commitment to cost containment, stating that "costs being passed along to our residents from out-of-control capacity market auctions are unjust and unacceptable." He views the price cap extension as a "practical and effective way to protect Marylanders" while the state pursues broader, long-term energy solutions. MEA Director Kelly Speakes-Backman echoed this sentiment, calling the collar a necessary bridge to encourage more generation and energy storage deployment and mitigate rate spikes. The proposal comes in response to rising electricity demand, notably from data centers, coupled with slower additions of new supply, which have pushed capacity prices higher. Maryland's support for the extension aligns with previous regional efforts, including a coalition of 13 PJM-state governors who advocated for similar protections projected to save the region $27 billion. The Moore administration has also implemented other energy affordability initiatives, including a December 2025 executive order and early 2026 legislative efforts aimed at annual savings for families, all complementing the regional and federal advocacy for PJM market reforms.