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

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0092*

SENATE BILL 92
C5, M5 6lr1245
(PRE–FILED) CF HB 143
By: Senator Hettleman
Requested: October 17, 2025
Introduced and read first time: January 14, 2026
Assigned to: Education, Energy, and the Environment

A BILL ENTITLED

AN ACT concerning 1

Electric Company Contracts, Capacity Market Models, and Regional 2
Transmission Organizations – Studies 3

FOR the purpose of requiring the Public Service Commission, in consultation with the 4
Maryland Energy Administration, to study the benefits and costs of requiring each 5
electric company to demonstrate that it has contracted for a certain amount of its 6
load–serving capacity for certain years; requiring the Commission and the 7
Administration jointly, in consultation with neighboring states, to study the benefits 8
and costs of, and make recommendations on, potential options for certain actions 9
with regard to withd rawing from the PJM Interconnection, LLC capacity market 10
model, developing a certain multistate compact, withdrawing from PJM 11
Interconnection, LLC, and establishing or joining an alternative regional 12
transmission organization; and generally relating to stu dies on contracts for 13
electricity supply and actions related to electric capacity market models and regional 14
transmission organizations. 15

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That: 17

(a) (1) In this section the following words have the meanings indicated. 18

(2) “Administration” means the Maryland Energy Administration. 19

(3) “Commission” means the Public Service Commission. 20

(4) “PJM” means PJM Interconnection, LLC. 21

(b) The General Assembly finds and declares that: 22

2 SENATE BILL 92

(1) PJM’s actions have resulted in increased costs and decreased 1
affordability for electricity ratepayers; and 2

(2) PJM has failed to: 3

(i) adequately address concerns about the impact of rate increases 4
on ratepayers; or 5

(ii) be responsive to State energy policies. 6

(c) The Commission, in consultation with the Administration, shall study the 7
benefits and costs of requiring each electric company in the State to demonstrate to the 8
Commission that it has contracted for at least 80% of its load –serving capacity over the 9
next 5–year period. 10

(d) In consultation with neighboring states, the Commission and the 11
Administration jointly shall study the benefits and costs of, and make recommendations 12
on, potential options for: 13

(1) withdrawing from the PJM cap acity market model and developing a 14
multistate compact to engage in the fixed resource requirement alternative to secure 15
electric capacity through: 16

(i) entering into contracts with private entities; or 17

(ii) competitive capacity auctions; and 18

(2) withdrawing from PJM and: 19

(i) establishing an independent regional transmission organization; 20
or 21

(ii) joining an existing regional transmission organization operating 22
in another region or state. 23

(e) On or before December 31, 2026, the Commission and the Administration 24
jointly shall submit a report to the Governor and, in accordance with § 2–1257 of the State 25
Government Article, the General Assembly on their findings and recommendations under 26
subsections (c) and (d) of this section. 27

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 28
1, 2026. 29