Maryland Governor Wes Moore called for sweeping changes to the country’s biggest electricity marketplace on Monday, targeting reforms that could impact power costs across Delaware and 12 other states served by the regional grid.
Speaking at the annual gathering of PJM Interconnection members, Moore advocated for extended power contracts and mandating that data centers fund the expensive infrastructure required to support their operations. The PJM network spans the Midwest and Mid-Atlantic areas and houses the globe’s highest concentration of data centers.
“For too long, affordability and reliability have been framed as somehow competing goals… that somehow keeping the lights on tomorrow requires working families to pay crushing prices today,” Moore told the audience. “That is a false choice.”
The regional electricity market has experienced severe supply shortages, driving residential power costs significantly higher and attracting increased political attention. PJM officials are considering substantial modifications to control data center energy demands and restore balance to regional power supplies following approximately two years where Big Tech companies’ server facility requirements have exceeded new grid capacity additions.
Capacity charges within PJM’s system, which function as insurance to maintain power during peak demand periods, have soared roughly 1,000% during the past two years. Moore joined other state leaders last year in successfully advocating for temporary limits on these costs.
A key component of PJM’s suggested changes involves establishing long-term, fixed-rate agreements between power suppliers and data centers.
Although Moore and PJM members reached consensus on the general framework of these reforms, they disagreed about what triggered the market instability.
During a panel conversation, PJM representatives cited inconsistent state policies, including clean energy initiatives favoring wind and solar over traditional gas and coal facilities, plus government market interference as factors deterring investors from making the long-term commitments necessary for constructing new regional power plants.
Moore and fellow governors within the PJM territory have contended that the grid operator has moved too slowly in adding new generation capacity while approving expensive transmission infrastructure projects they claim haven’t benefited their states.
PJM acknowledged the strain from rising electricity costs throughout the region and stated it was working to accelerate the introduction of additional power supplies to the grid.
“This is a generational challenge that no one organization, state or industry can solve alone. It will take coordination across policymakers, grid operators, utilities, generators, and large energy users to help evolve the grid at the speed and scale this moment demands,” PJM spokesman Jeff Shields said.
Moore plans to sign Maryland’s Utility RELIEF Act on Tuesday, legislation designed to deliver financial assistance to utility customers through dedicated funds and other provisions, including limits on utility executive compensation.
