ANNAPOLIS, MD — The Maryland Energy Administration today announced its strong support for a proposal by regional grid operator PJM Interconnection to extend the existing capacity price cap and floor through the 2029/2030 delivery year. The move is designed to shield Maryland residents and businesses from unreasonable spikes in energy costs while the state leverages tools within its jurisdiction to lower costs for consumers. In a filing with the Federal Energy Regulatory Commission (FERC) on February 27, 2026, PJM requested to maintain a capacity auction price cap of approximately $325/MW-day. This "price collar" provides a critical safety net against extreme market volatility and high prices in the PJM market. This follows direct advocacy from Governor Moore and fellow PJM states. The Maryland Energy Administration strongly supported the continuation of the price cap in comments to FERC, citing the reality that without it, the costs of an auction in April 2025 would have been 60% higher – and those costs would have been passed along to ratepayers who are already struggling with rising energy costs. “I have been crystal clear that the costs being passed along to our residents from out-of-control capacity market auctions are unjust and unacceptable,” said Governor Wes Moore. “As we continue to pursue a comprehensive and aggressive strategy for combatting rising energy costs, this price cap represents both a practical and effective way to protect Marylanders. Today’s filing would lengthen the protections we have already secured while we keep fighting for additional long-term solutions.” “While we work aggressively to encourage more generation and energy storage deployment, and as we look to the most cost effective measures to bring energy costs down, we need cost-containment measures like these to better protect Marylanders from rate spikes,” said Maryland Energy Administration Director Kelly Speakes-Backman. “Since its initial implementation, the price collar has helped to protect against unjust and unreasonable capacity costs. Its continuation is essential for Maryland as we implement short, medium, and long term solutions for Maryland’s energy future.” Governor Wes Moore in January joined a coalition of governors at the White House to sign a Statement of Principles calling for urgent reforms to the PJM Interconnection capacity market, which ensures reliable electricity supply in Maryland. The agreement, signed by all fellow PJM governors, outlines a coordinated strategy to incentivize new power generation, protect residential customers from price increases, and ensure that data centers pay for the generation investments they drive. Governor Moore also issued a December 2025 executive order to support energy affordability and address anticipated shortfalls in energy generation. Last week, Governor Moore and leaders of the Maryland General Assembly crafted a legislative package that will save Maryland families at least $150 per year on their energy bills. ###
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