PJM extends price cap to curb future energy bill spikes

Marylanders have been feeling the sting of higher electricity bills this winter, and now Governor Wes Moore says a decision by the regional grid operator PJM could help prevent even bigger spikes in the years ahead.  

PJM's board voted to extend a price cap, also called a "price collar," on its capacity market through 2030. 

That market helps determine how much utilities pay for power plant owners to make sure enough electricity will be available in the future. 

BGE spokesperson Nick Alexopulos stresses this isn't controlled by BGE, but it's still something customers pay for under the supply portion of their utility bill. 

"We commend Governor Moore for taking another step to address the energy affordability crisis in Maryland. And this is another acknowledgment that we're also in an electricity generation crisis, and we need to build more in-state generation to bring down costs and ensure reliability for BGE customers and electricity customers statewide," Alexopulos said. 

This could bring some relief, but it doesn't solve the bigger issue driving prices higher, he added, stating, "That is a near-term solution to the affordability crisis." 

Rising electricity demand in Maryland

He says Maryland's biggest challenge is that demand is rising, and the state doesn't generate enough electricity on its own. 

"Right now, Maryland imports 40% of the power it uses, and that's just unsustainable. We need to take control of our energy future, and Governor Moore has taken another important step in doing that, and we've got a lot more work to do," Alexopulos added. 

In the meantime, BGE says it will continue working with Gov. Moore's administration to explore whether the caps can be lowered even more. 

PJM estimates extending the price cap could save consumers across the region $27 billion by the end of the decade. PJM is expected to file the changes with federal regulators in the coming weeks.