Democratic state lawmakers said Tuesday they have “grave concerns” about a fast-approaching bill hike for electricity ratepayers and are pushing the Federal Energy Regulatory Commission to step in.

“We urge you to take action to protect Maryland households from exorbitant costs set to take effect June 1,” a letter from 87 state legislators reads. The letter cites “significant defects” in PJM Interconnection’s capacity market auction and the “inflated” price tag on the Brandon Shores and H.A. Wagner power plants in Anne Arundel County.

PJM Interconnection is the region’s power grid operator, serving 13 states and the District of Columbia.

The list of co-signers includes 16 Democratic senators and 71 delegates. One Republican, Del. Jim Hinebaugh Jr. of Garrett and Allegany counties, also signed on.

PJM defended its actions in a statement Tuesday night.

“The rules for the 2025/2026 auction were just and reasonable as approved by the Federal Energy Regulatory Commission,” the grid operator said. “It is not legally possible to adjust the auction results at this time. And there is no reason to do so, as all actions were in accordance with the rules.”

PJM said the tightening of the supply/demand balance reflects national trends.

“Higher prices are being driven [by] decreasing electricity supply, resulting mainly from generator retirements driven by state and federal policy; [an] increase in projected peak electricity use; and market reforms that better account for the system’s needs during extreme weather and the ability of generation resources,” it said in statement. “The regional market is sending a price signal that should incentivize investment in generation resources.”

In Maryland, PJM said, demand for electricity is rising while generation resources are being retired. The grid operator said it doesn’t “underestimate the impact of higher electricity costs to consumers,” which is why it’s working with stakeholders to “maximize available generation while bringing new generation online faster.”

FERC did not immediately respond to a request for comment.

The issue with the capacity market auction was triggered by the ongoing regulatory battle over the “reliability-must-run” agreements for the region’s two local power plants.

In October 2023, Talen Energy, owner of the generators, announced that it would retire the power plants — but PJM determined those plants must continue operating due to grid reliability concerns.

In July 2024, the Federal Energy Regulatory Commission (FERC) approved the “reliability-must-run” agreements but found the rate schedules for the plants to be “unjust, unreasonable, unduly discriminatory or preferential, or otherwise unlawful.”

Its decision sent all parties involved, including the Maryland Office of People’s Counsel, a utility consumer advocate, into a settlement process.

Despite FERC‘s approval of the reliability-must-run and the ongoing settlement, the retiring plants weren’t included in last summer‘s capacity market auction. Capacity market auctions “ensure enough electricity is available for future demand at the lowest achievable price for consumers,” according to FERC.

That increased supply costs in PJM’s service area over a year from $2.2 billion to $14.7 billion. The new capacity auction prices will hit bills starting June 1, just as the weather starts to warm up and heavy air-conditioning usage drives up bills.

The Office of People’s Counsel filed a complaint with FERC in April, urging the commission to reduce the burden on ratepayers by $5.5 billion.

The Maryland Public Service Commission said Tuesday that it supports the People’s Counsel’s position and urged FERC to “override the outcomes of PJM’s markets when it finds that ratepayers — and particularly Maryland ratepayers — will be overcharged."

A People’s Counsel report found that the current auction rates would increase Baltimore Gas and Electric bills by $16 a month for the average residential customers and $170 for commercial customers.

Maryland People’s Counsel David Lapp said in an April statement that “PJM ran a flawed auction” and asked FERC to direct PJM to “reset the prices” and correct its “flawed rules” for future auctions.

State officials are also concerned about the cost of the reliability-must-run agreement.

Talen Energy and PJM notified FERC that ratepayers would have to pay more than $250 million per year for the two plants to continue operating past their planned retirement next month. Several consumer and environmental advocates raised red flags at the time about the need for the agreement and its cost.

Maryland’s congressional delegation previously criticized the reliability-must-run plan as an “injustice” and “inefficient,” and called PJM’s processes “outdated.”

An agreement was nearly reached in January that would have decreased the reliability-must-run tally from $252 million to $180 million per year.

The actual cost, according to the People’s Counsel, is $97 million a year, and the office contested the settlement.

According to the People’s Counsel, Talen Energy threatened to withdraw from the reliability-must-run agreement if its proposed settlement was not approved.

“Maryland customers should not have to pay twice for reliability even for one year, nor should customers across the region pay billions more for PJM’s other rules in place last summer that are now recognized as flawed,” the Maryland legislators’ letter reads.