Maryland Senate Bill SB92

Maryland 2026 Regular Session

• Introduced: 1/14/26
• Refer: 1/14/26

Caption

Electric Company Contracts, Capacity Market Models, and Regional Transmission Organizations - Studies

Impact

The legislation's focus on the PJM Interconnection, LLC, reflects an intent to reevaluate the current capacity market model used in the region. The findings indicate that the existing framework imposed by PJM has led to higher costs and reduced affordability for electricity ratepayers. By increasing scrutiny on electric companies, SB92 aims to foster a more stable and cost-effective energy supply system, potentially leading to policy changes that benefit consumers through more competitive pricing and improved service reliability.

Summary

Senate Bill 92 is designed to address the operational framework of electricity supply contracts and the broader implications of regional electricity markets. This bill mandates the Public Service Commission, in collaboration with the Maryland Energy Administration, to study and report on the necessity of electric companies to demonstrate that they have contracted for a minimum of 80% of their load-serving capacity over a five-year period. This requirement aims to ensure reliability and accountability among electric providers, ensuring that they have enough capacity secured to meet consumer demand efficiently.

Contention

Notably, the bill raises important discussions regarding Maryland's energy policy and its participation in the PJM market. Some advocates may view the stipulations for studying the withdrawal from PJM as an opportunity to explore alternative structures that could enhance service delivery. Critics, however, may express concerns over the risks associated with changing the existing arrangements and the potential consequences on regional cohesion and energy reliability. Thus, the exploration of alternatives, including forming a multistate compact or establishing an independent regional transmission organization, could spark significant debate within policy and legislative circles.