BALTIMORE — Maryland residents will see higher energy bills starting June 1, as rates are set to increase heading into the high-cost summer months.
The average BGE customer could see their bill increase by about $16 next month.
"What would be an increase in something like $16 in BGE on an average bill starting June 1st," said Delegate Lorig Charkoudian, a Democrat from Montgomery County.
Watch as lawmakers break down the changes
The increase is coming from the supply side, something BGE doesn't set, but rather another three-letter-entity called PJM.
The capacity market auction happened last July, but lawmakers say the Federal Energy Regulatory Commission (FERC) has already determined the rules of that auction were unfair.
"Complaints were filed and FERC said, you know what, this auction does not have the correct rules. These are unfair rules and so you need to change the rules of the auction. And so going forward will be under rules that we consider more or less fair," Charkoudian said.
Maryland lawmakers are now asking FERC to force PJM to lower supply rates.
"What this complaint is saying and what the legislators are weighing in on is FERC, you said PJM's rules are unfair, so you should not allow them to collect this money that they're collecting or about to collect from our ratepayers under rules that you've already set are unfair," Charkoudian said.
If FERC recognizes the complaint, the average BGE bill would only see a $6 monthly increase instead of $16.
These estimates are based on energy usage, so customers who use more electricity will see a larger impact on their bills.
PJM responded to a request for comment, stating, "The rules for the 2025/2026 auction were just and reasonable as approved by the Federal Energy Regulatory Commission. It is not legally possible to adjust the auction results at this time. And there is no reason to do so, as all actions were in accordance with the rules."
The rules for the 2025/2026 auction were just and reasonable as approved by the Federal Energy Regulatory Commission. It is not legally possible to adjust the auction results at this time. And there is no reason to do so, as all actions were in accordance with the rules.
In addition, the 2025/26 capacity prices accurately signaled that the supply/demand balance is tightening across the RTO; this is a phenomenon that is happening nationally. Higher prices are being driven by decreasing electricity supply due primarily to historic state and federal policy, and in increase in demand due primarily to the proliferation of data centers, electrification and the onshoring of U.S. manufacturing. The regional market is sending a price signal that should incentivize investment in generation resources.
Maryland, similar to many other states across the PJM footprint, needs energy infrastructure. For decades, the state has been importing electricity produced in other states – historically, 40% – to meet its needs. Maryland has seen the retirement of 6,000 MW of generation resources since 2018, with only 1,600 MW added during that time frame. In addition, Maryland also is adding significant new electricity demand.
We don’t underestimate the impact of higher electricity costs to consumers that are being felt within PJM and across the country. That’s why we continue to work with all our stakeholders to alleviate the supply and demand imbalance that is driving those costs, through multiple successful proposals [insidelines.pjm.com] to maximize available generation while bringing new generation online faster. This work includes our recently announced collaboration with Google and Tapestry [insidelines.pjm.com].
This story was reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
