Story perspectives

Maryland Governor Urges PJM Reforms Amid Rising Energy Costs

1/30/2025

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Summary

Story summary

Maryland Governor Wes Moore backs Pennsylvania Governor Josh Shapiro's complaint about PJM Interconnection's energy auction issues.
Moore's letter calls for PJM to revise capacity rules to mitigate rate increases amid soaring energy costs.
Although a new agreement saves $21 billion over two years, Maryland residents will still see significant rate hikes this summer.
Critics argue that PJM must resolve fundamental issues to enable new energy projects and avoid future price surges.

History

Historical Context

Maryland's energy challenges echo past regulatory shifts in the U.S. electricity market. The 1992 Energy Policy Act aimed to foster competition, yet led to issues like the "missing money" problem, hindering investment in new capacity. As states grapple with rising costs and capacity rule reforms, they reflect ongoing tensions between deregulation and the need for reliable, affordable energy, reminiscent of past crises like California's energy debacle in 2000-2001.

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Story summary

Maryland Governor Wes Moore backs Pennsylvania Governor Josh Shapiro's complaint about PJM Interconnection's energy auction issues.
Moore's letter calls for PJM to revise capacity rules to mitigate rate increases amid soaring energy costs.
Although a new agreement saves $21 billion over two years, Maryland residents will still see significant rate hikes this summer.
Critics argue that PJM must resolve fundamental issues to enable new energy projects and avoid future price surges.

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