Maryland doesn’t have enough power supply.

Q: Why are my energy bills going up?

Most of your bill reflects the cost of electricity supply, not delivery. In Maryland, public utilities deliver electricity to homes and businesses, but they don't generate most of the power we use. On a typical bill, about 30% covers local delivery — the poles, wires, and reliability services provided by your utility — while roughly 70% reflects the cost of electricity supply purchased from private energy corporations. When supply is tight in regional markets, supply prices rise and customers feel it on their bills, even if their usage doesn't change.

Q: Isn't this just helping utilities?

No. Utilities don't control electricity supply prices, and they don't benefit when supply costs spike. Today, they're required to buy most power from private markets even when prices surge. Allowing public utilities to help create more power options gives Maryland a backstop when private markets don't deliver enough affordable supply. The goal isn't to favor utilities, it's to fix a system that leaves customers exposed to higher prices and growing instability and ensure someone can step in to protect reliability and affordability when the current system isn't working.

And we’re paying the price.

As Maryland’s economy grows and energy use increases, demand for power supply is rising — especially during hot summers and cold winters when everyone is using energy at the same time. But power supply hasn’t kept pace. And when there isn’t enough to meet demand, prices spike. Importantly, utilities do not set or control power supply prices. They are passed through from suppliers to customers on their utility bills with no additional mark-up.

The Fix

Why Bills Are Rising

Maryland Matters headline about likely energy bill increase in 2026 following maximum price electricity auction.

Here’s the part most people don't realize: Maryland’s public utilities deliver energy to homes and businesses, but they do not generate any of the power supply we use. The cost of power supply is largely set through regional markets dominated by private power plant companies.

When power supply is tight, prices rise — and Marylanders feel it.

Maryland doesn’t have enough power supply

Maryland relies on other states for roughly 40% of its energy. As demand continues to grow, more reliable in-state power is needed to meet that demand. Yet power supply has lagged, most notably during peak periods, when everyone is using energy at the same time. When power supply falls short, energy prices spike.

Private power plant companies profit while we pay the price

Because Maryland’s utilities must buy most energy from private markets, they have limited control over supply prices. When power supply is scarce, prices rise — and private power supply companies benefit while customers pay more on their bills. For example, in the most recent regional power auction, power supply prices jumped from roughly $28 per megawatt-day to record highs of more than $300 — costs that will ultimately be passed through to Maryland customers.

The system is reaching a breaking point

Tight power supply is already driving higher costs. Without new power supply options, those pressures will continue, leading to greater exposure to price spikes, increased strain on the system over time, and a higher risk of blackouts.

Let Maryland’s public utilities build power.

Maryland’s public utilities already deliver energy to homes and businesses across the state. But outdated rules restrict their ability to build power supply to meet growing demand — forcing Maryland to rely heavily on energy purchased from private power supply companies instead.
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This isn’t about utilities expanding for their own sake. It’s about ensuring Maryland has a backstop when private markets don’t deliver enough affordable power supply.

Letting Maryland’s public utilities build power supply will:

Help stabilize energy prices by easing shortages

Improve reliability

Reduce blackout/brownout risk during peak demand

Dozens of states already allow public utilities to build power supply to meet growing demand — including in neighboring Virginia.

In Virginia, utilities have more flexibility to help meet rising demand when private markets fall short.

As regional power supply has tightened, retail energy prices have risen far faster in Maryland than in Virginia. Since January 2023, average retail energy prices are up roughly 2% in Virginia, compared to 17% in Maryland.

The difference isn’t geography. It’s policy.

Since January 2023, average retail electricity prices are up 2% in Virginia, but up 17% in Maryland. Source: U.S. Energy Information Administration

FAQs

Why are my energy bills going up?

Most of your bill reflects the cost of power supply, not delivery. In Maryland, public utilities deliver energy to homes and businesses, but they don’t generate any of the power we use. On a typical bill, about 30% covers local delivery — the poles, wires, and reliability services provided by your utility — while roughly 70% reflects the cost of energy supply purchased from private power plant companies. When supply is tight in regional markets, power supply prices rise and customers feel it on their bills, even if their usage doesn’t change.

Don’t public utilities already make power?

No. In Maryland, public utilities are primarily responsible for delivering energy to homes and businesses. Most power is purchased from private power plant companies through regional markets.

Why hasn’t the private market solved this?

Today’s market rewards scarcity. When power is limited, prices rise and private power plant companies profit. That doesn’t always align with what’s best for customers who need affordable, reliable energy.

Isn’t this just helping utilities?

No. Utilities don’t control energy supply prices, and they don’t benefit when power supply costs spike. Today, they’re required to buy most power from private markets even when prices surge. Allowing public utilities to help create more power options gives Maryland a backstop when private markets don’t deliver enough affordable power supply. The goal isn’t to favor utilities, it’s to fix a system that leaves customers exposed to higher prices and growing instability and ensure someone can step in to protect reliability and affordability when the current system isn’t working.

Will letting utilities build power lower bills immediately?

No single change fixes everything overnight. But increasing available power supply is one of the most effective ways to reduce shortages, stabilize prices, and protect customers from extreme price swings over time.

What happens if nothing changes?

Maryland will remain dependent on imported power and exposed to volatile prices. That means continued pressure on household budgets along with growing reliability risks, especially during periods of peak demand when the system is under the most strain. Over time, those risks can increase the likelihood of power outages if supply doesn’t keep pace with demand.

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