Maryland lawmakers are pressing for greater state influence over the regional electricity market as residents confront some of the fastest-increasing electric bills in the United States. The debate centers on PJM Interconnection, the regional grid operator responsible for managing electricity generation and pricing across Maryland and 12 additional Mid-Atlantic states.

At a Federal Energy Regulatory Commission (FERC) conference held Thursday, state officials and advocates raised concerns over PJM’s governance structure and its ability to adapt to evolving electricity demands. They argued that Maryland consumers, not PJM, bear the brunt of rising costs, but elected officials receive the complaints. "When electricity bills go up, our constituents don’t call PJM. They call us," said state Sen. Katie Fry Hester, chair of the Senate’s energy subcommittee.

The FERC review comes after a recent surge in wholesale electricity prices stemming from record-high capacity auction results. These price increases have been driven by a combination of rising demand—partly linked to new data centers—retirement of older power plants, and delays in connecting new generation projects to the grid. The added wholesale costs have subsequently filtered down to utility bills, impacting consumers statewide.

PJM has expressed support for the regulatory review and the potential for reforms. “We appreciate FERC convening,” said PJM spokesperson Daniel Lockwood. “PJM has long supported continuous improvement, and we recognize that our governance and stakeholder processes should evolve as the electric system evolves.” FERC Chair Laura Swett emphasized that PJM has until September to propose meaningful changes before the commission considers more directive action.

Lawmakers from Maryland and other states called on FERC to implement reforms that would amplify state roles in PJM decision-making, enhance board independence, and increase transparency. The discussions reflect growing frustration with PJM’s management of capacity markets, especially after consecutive auctions produced record prices amid challenges integrating new power resources and retiring older plants.

Environmental and consumer advocates shared similar concerns about PJM’s oversight. Brittany Baker, Maryland director of the Chesapeake Climate Action Network, stressed PJM’s responsibility to anticipate system changes to prevent sharp cost increases for consumers. “If a person drowns at a public pool, the lifeguard is responsible,” Baker said. “PJM is supposed to be the entity that has that top-line view of all these issues and rectifies the issues before they become 20 percent, 30 percent, 40 percent increases for ratepayers.”

Del. Lorig Charkoudian, a Montgomery County Democrat who has long called for reforms at PJM, criticized current market rules for delaying the deployment of renewable energy and battery storage projects that could lower costs and reduce emissions. “Here we have a solution to reliability, a solution to carbon emissions and a solution to affordability,” Charkoudian said. “And we are undermined in our ability to put that online because of PJM rules.”

Maryland PIRG senior adviser Emily Scarr highlighted the lack of consumer input in PJM’s decisions, advocating for a stronger public voice alongside utilities and market participants to better balance affordability with grid reliability.

Supporters of reform acknowledge that changes will take time to influence electricity rates but stress that immediate action is necessary to shape more affordable and sustainable energy outcomes for Maryland residents in the long term.