Maryland advocates and lawmakers protested outside FERC as regulators reviewed PJM Interconnection after a 2024 capacity auction sent clearing prices roughly eight times higher than the previous year. Analysts say forecasts—especially from data centers—helped drive the spike, and BGE customers could pay about $21 more per month in 2025. Maryland leaders, backed by Gov. Wes Moore, want stronger state influence over PJM, clearer processes at FERC, and steps to limit future bill shocks.
Maryland Leaders Rally at FERC, Press PJM for Reform After 2024 Auction Sends Bills Soaring
Photo Credit: Maryland LCV
Outside the Federal Energy Regulatory Commission, Maryland advocates and elected officials gathered to demand reforms after a 2024 PJM Interconnection capacity auction sent wholesale clearing prices sharply higher and raised alarms about rising consumer electric bills.
What Happened
PJM, the regional grid operator that runs the transmission system and wholesale electricity market across much of the Mid‑Atlantic, held a capacity auction in 2024 that pushed clearing prices to roughly eight times the level seen a year earlier. Forecasts showing rapid demand growth—particularly from large, energy‑intensive facilities such as data centers—were cited as a key driver of the spike. Those higher wholesale costs flowed through distribution utilities to customers, prompting public outcry.
Local Impact
Analysts projected that Baltimore Gas & Electric (BGE) customers would face the largest increase among Maryland utilities, about $21 more per month in 2025. When wholesale auction prices surge, utilities generally pass increased procurement costs to customers, which can raise household bills even if a household’s own consumption does not change.
Political Response And Federal Review
The demonstration in Washington coincided with a full day of federal review of PJM at FERC. Maryland Governor Wes Moore and state lawmakers urged both the federal regulator and PJM to adopt clearer processes, speed decision‑making, and take steps to limit future bill shocks. Inside the FERC session, commissioners signaled support for reforms to improve transparency and reduce costs for consumers.
“PJM has lost sight of who its customers are,”
Longer-Term Governance Push
Maryland officials and consumer advocates are pressing for longer‑term governance changes at PJM so states and ratepayers have more influence over market rules and operator decisions. Their goal is to reshape market structures so they better reflect the interests of residents and local utilities rather than being driven primarily by market participants.
Legal And Regulatory Developments
Pressure on PJM has spread beyond Maryland. After the 2024 auction, Pennsylvania Governor Josh Shapiro sued the operator—a move that Maryland’s governor supported. In January 2025 a settlement established a temporary ceiling on auction prices; that cap has been extended multiple times, with regulators and analysts estimating consumer savings in the tens of billions of dollars.
Why It Matters
The dispute highlights a broader challenge in the energy transition: rising electricity demand, faster interconnection of new resources, and the need to maintain reliability can collide with market designs that transmit sudden price spikes to millions of customers. As Sen. Hester noted at the rally, “Every decision they make affects the 67 million ratepayers, yet PJM's governance is primarily accountable to its market participants.”
State officials say regulatory and governance reforms are necessary to prevent future bill shocks and to align market incentives with reliability and affordability for households, renters, and small businesses.
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