Maryland Leads Push for PJM Reforms Amid Data Center Growth
Maryland Governor Wes Moore announced that a state-led coalition's advocacy led to a capacity market price cap in the PJM Interconnection's auction, saving ratepayers an estimated $13.3 billion. These reforms address rising energy costs partly fueled by explosive data center growth across the multi-state region, directly benefiting Maryland residents.
Maryland Governor Wes Moore announced significant savings for ratepayers after the PJM Interconnection’s 2028/2029 Base Residual Auction. The state-led initiative helped implement a capacity market price cap of $325 per megawatt-day, preventing an estimated $13.3 billion in excess costs for consumers across PJM’s 13-state footprint.
Governor Moore emphasized that these aggressive actions were taken to make energy more affordable and combat rising costs fueled by rapid data center growth. Earlier this year, Moore joined a coalition of PJM-state governors advocating for urgent reforms and directly addressed PJM executives, pushing for greater accountability. The Moore-Miller administration has also prioritized energy affordability through initiatives like the Utility RELIEF Act and direct rebates, while Maryland Energy Administration Director Kelly Speakes-Backman highlighted the necessity of state intervention to manage regional energy prices and shield ratepayers from data center impacts.
Southern Maryland residents, served by utilities like SMECO, are expected to benefit from these regional and state-level actions, which aim to balance reliability, affordability, and clean energy goals amidst rapid growth and ongoing grid pressures.