Maryland Lawmakers Urge Federal Intervention Electricity Rate Hike

Dozens of Maryland lawmakers are urging the Federal Energy Regulatory Commission (FERC) to take action before a sharp increase in electricity bills takes effect on June 1.

In a letter signed by 87 state legislators, including 16 senators and 71 delegates, officials expressed “grave concerns” over the results of PJM Interconnection’s recent capacity market auction. The lawmakers argue the auction produced inflated prices tied to two aging power plants in Anne Arundel County—Brandon Shores and H.A. Wagner—which PJM says are still needed for grid reliability despite planned retirements.

PJM, which operates the power grid across 13 states and D.C., defended the auction process, saying it followed FERC-approved rules. The company cited broader market factors, including plant closures, increased demand, and policy-driven reforms as reasons for the price hike.

But Maryland’s Office of People’s Counsel says the results were flawed and has asked FERC to reduce the burden on ratepayers by $5.5 billion. According to their report, monthly bills could rise by $16 for average residential customers and $170 for commercial users.

The controversy stems from “reliability-must-run” agreements that kept the coal plants open, despite FERC ruling last year that their proposed rates were “unjust and unreasonable.” Talen Energy, the plant owner, has warned it may exit the agreement if a favorable settlement isn’t reached.

Maryland’s Public Service Commission also supports intervention, calling for FERC to override PJM’s auction outcome.

“Maryland customers should not have to pay twice for reliability,” the legislators wrote.