Maryland Governor Wes Moore Joins Bipartisan Push for PJM Energy Reforms

Maryland Governor Wes Moore (D) has aligned with President Donald Trump’s administration and a coalition of governors to advocate for significant reforms to the PJM Interconnection, the operator of the largest electric grid in the United States. This coalition aims to address rising electricity prices and the growing demand from data centers, which are projected to consume substantial amounts of power in the coming years. The governors signed a Statement of Principles urging PJM to implement a $15 billion plan to enhance power generation and ensure that data centers contribute fairly to the costs associated with their energy consumption.

Maryland MattersGov Moore Joins Coalition of Governors Calling for Urgent Reforms to PJM Interconnection MarketBloombergThe HillReutersUtilityDive

The proposal includes three main pillars: protecting residential customers from price hikes, shifting the costs of new power generation to data centers, and incentivizing new energy generation. Specifically, it calls for a "Reliability Backstop Auction" to be held by September 2026, which would provide long-term price certainty to encourage the rapid construction of new power plants. Additionally, the plan seeks to expedite the interconnection process for new energy projects, aiming to reduce timelines to 150 days or less.

Gov Moore Joins Coalition of Governors Calling for Urgent Reforms to PJM Interconnection Market

In response to the governors' initiative, PJM unveiled its own plan, which includes a "bring your own generation" (BYOG) approach, encouraging data centers to supply their own power. PJM's Board Chair David Mills emphasized that the plan aims to balance the integration of new loads while maintaining grid reliability. However, environmental groups, including the Natural Resources Defense Council, criticized PJM’s approach, arguing it favors fossil fuels over clean energy projects and lacks sufficient protections for ratepayers.

Maryland Matters

Critics of PJM's plan, including Maryland Delegate Lorig Charkoudian (D-Montgomery), argue that it disproportionately benefits fossil fuel power plants at the expense of renewable energy sources. Charkoudian stated that the fast-tracking of energy projects is biased towards fossil gas, undermining the potential for solar and battery solutions, which are more cost-effective. Additionally, some Republican lawmakers expressed concerns that Governor Moore's focus on renewable energy could hinder immediate solutions to the energy crisis.

Maryland Matters

While PJM's plan aims to address the urgent need for new power generation, there are discrepancies regarding its effectiveness. Critics point out that PJM's past performance in processing new energy projects has been slow, contributing to rising electricity prices. Furthermore, the lack of binding authority in the governors' proposal raises questions about its implementation and the timeline for any potential auction.

Gov Moore Joins Coalition of Governors Calling for Urgent Reforms to PJM Interconnection Market

The next steps involve PJM submitting its plan to the Federal Energy Regulatory Commission for approval, while the coalition of governors continues to advocate for reforms that prioritize consumer protection and grid reliability. The outcome of these initiatives will be closely monitored as the demand for electricity from data centers continues to escalate, potentially reshaping the energy landscape in the Mid-Atlantic region.

Bloomberg

• “I have been crystal clear: We cannot build a 21st-century economy on an energy market that blocks new supply,” — Wes Moore, Governor of Maryland

Maryland Matters

• “This is not a yes/no to data centers. This is ‘How can we do this while keeping the lights on and recognizing the impact on consumers at the same time?’” — David Mills, PJM Board Chair and Interim President and CEO

The Hill

• “The primary fast-tracking of energy PJM is doing is biased towards fossil gas,” — Lorig Charkoudian, Maryland Delegate

Maryland Matters

• “We support President Trump and the Governors' focus on swift changes to help lower energy costs for customers and get more power plants online,” — Drew Maloney, President and CEO of the Edison Electric Institute

UtilityDive