Maryland electric bills are going up this fall

Most people in Maryland will see higher electric bills this fall compared to last fall. These higher costs are largely because prices from the “capacity market” auction went up by 800%. The capacity market auction is meant to ensure electric system reliability, and is run by PJM Interconnection, the regional transmission organization (RTO) that coordinates the movement of electricity in all or parts of 13 states and the District of Columbia.

Why did prices go up so much?

There are two main reasons:

1. Two power plants near Baltimore (Brandon Shores and Wagner) were left out of the auction even though they are still being used for reliability. This mistake added up to $5 billion to the auction results. PJM later admitted this error and changed its rules for future auctions but left in place the higher costs for this year.

2. Data centers—mostly located outside of Maryland—are using and forecasted to use more and more power. They can be built faster than new power sources can be added. In one estimate, data centers caused $9.3 billion of the total $12.5 billion price increase.

When will prices go up?

When the costs go up, they will appear in the "supply" part of your electric bill. Different electric companies are passing these costs on to customers at different times:

*SMECO: Started in June

*Pepco and Delmarva Power: Started in August

*Potomac Edison: Started in October

*BGE: Only during September-November 2025 and March-May 2026, so customers avoid higher bills in the summer and winter

What you can do

Your total bill will still depend on how much electricity you use. You can lower your bill by using less electricity.

*You might qualify for programs that help make your home more energy efficient.
*If you need help paying your bill, there are programs that are available.

What's being done

Maryland’s Office of People’s Counsel (OPC) filed a complaint with federal regulators about the auction results that are increasing prices now. If OPC wins, customers may get some of their money back as refunds.

Want to learn more? Read our press release on this topic.