Maryland lawmakers are considering a bill that would explore the impact of leaving the regional power grid operator, known as the PJM Interconnection.

The legislation joins a myriad of proposals that aim to lower skyrocketing utility bills for Maryland ratepayers — a declared top priority for lawmakers this legislative session.

The PJM is the largest regional transmission organization in the country, managing the flow of electricity for 13 states, including Maryland.

The Old Line State has been a member of the PJM since 1956, but criticisms over the grid operator’s management tactics have surged in recent years.

The strife largely began following a record-high capacity auction in the summer of 2024 — a mechanism that allows utilities and energy providers to purchase electricity from power generators years in advance to ensure there is enough electricity for future demand.

PJM capacity costs jumped from $2.2 billion in 2023 to a whopping $14.7 billion in 2024 and surged again to $16.1 billion in 2025.

These exorbitant prices have widely been attributed to the rise in data centers and a lack of regional energy generation to keep up with their large-load demand.

PJM has actively been working to speed up its queue process to bring more new generation online, but member states are arguing the grid operator’s efforts do not go far enough.

PJM states lack a formal role in the operator’s governance, and Pennsylvania and Virginia have threatened to leave the grid if states are not given a larger role.

Gov. Wes Moore is also a supporter of PJM reform, announcing a joint proposal last month — along with 10 other member-state governors — calling on the PJM to require data centers to pay their fair share for the much-needed increased generation investments.

And now, Maryland Sen. Shelly Hettleman (D-Baltimore County) wants to know if there are better alternatives to being a member of the PJM through SB0092.

“Let me be clear, this bill does not presume that Maryland will or even should withdraw from PJM. Rather, it recognizes that we need rigorous, fact-based analyses of our options in the face of significant concerns about rising electricity costs and PJM’s unresponsiveness to state energy policies and prices,” Hettleman said during the bill’s committee hearing.

Hettleman says lawmakers owe it to their constituents to examine whether an alternate approach, like a multi-state compact, might better serve ratepayer interests while maintaining grid reliability.

“The current system is broken and unresponsive to state policy priorities and ratepayers deserve to know whether better options exist,” she said.

The bill would require the Public Service Commission – the state-run utility operator — and the Maryland Energy Administration — a state agency promoting clean, reliable and affordable energy — to study the impact of a few different market structures.

Most notably, one model would be withdrawing from the PJM along with neighboring states and forming a multi-state coalition to establish an independent regional transmission organization.

However, Maryland People’s Counsel David Lapp — the state’s independent ratepayer advocate — says this path would likely be unsuccessful without the partnership of states that export more energy than they consume.

Maryland is known as an “importer,” pulling in about 40 percent of its energy from other states.

“Any configuration that involves Maryland leaving PJM will have to account for the give-and-take, and Maryland won’t be able to do that alone, nor is that a likely possibility,” Lapp said, saying exporter states want to be in a market where they can profit off of their excess energy.

If signed into law, the report exploring other grid market options would have a Dec. 31, 2026, delivery deadline.

The Maryland Energy Administration did not submit testimony in opposition of the bill, but noted the study would involve “significant legal, economic and operational complexity” and that the administration would need additional resources.

The bill awaits a vote in the Senate Education, Energy and Environment Committee.