Maryland's Moore Pushes PJM Reforms as Capacity Costs Jumped 1,000%
Updated
Updated · Reuters · May 11
Maryland's Moore Pushes PJM Reforms as Capacity Costs Jumped 1,000%
8 articles · Updated · Reuters · May 11
Wes Moore urged PJM to adopt long-term power contracts and make data centers pay for the grid infrastructure needed to serve their fast-rising electricity demand.
Roughly two years of Big Tech data-center growth outpacing new power supply have driven a regional supply crunch, sending household electricity bills sharply higher across PJM's 13-state market.
PJM and governors broadly agree on reform, but split on the cause: PJM blames inconsistent state policies and market intervention for deterring investment, while Moore says the grid operator has been too slow to add generation.
PJM said it is working to speed new electricity supplies, while Moore is set to sign Maryland's Utility RELIEF Act on Tuesday to cushion customers with set-aside funds and other measures.
Are skyrocketing data center power demands holding residential electricity bills hostage in America's largest grid?
As data centers fuel a new gas boom, is the green energy transition for 67 million Americans already dead?
PJM Capacity Prices Surge to Record Highs: Maryland’s $200 Million Relief and the Data Center Demand Crisis
Overview
In May 2026, PJM Interconnection faced a major crisis as capacity prices surged, leading to higher electricity costs for consumers like BGE ratepayers. Although BGE received a credit for importing power in 2024, which lowered their clearing price, the following year's auction brought higher costs despite a lower auction price. In response, Maryland Governor Wes Moore's administration took action by providing $200 million in direct electricity bill rebates and pursuing further reforms to ease the financial burden on residents. These efforts highlight the state's commitment to protecting consumers amid ongoing energy market challenges.