ANNAPOLIS, Md. - Maryland families facing higher electric bills could see new relief under a sweeping energy proposal announced by Governor Wes Moore on Tuesday.
On Jan. 27, Moore unveiled the Lower Bills and Local Power Act, part of the Moore-Miller Administration’s 2026 legislative agenda. The act is aimed at lowering utility costs, strengthening the electric grid, and expanding local energy production across the state, according to the Governor’s office.
“Energy policy is about more than megawatts and transmission corridors - it’s about whether Maryland families can afford to live in their homes,” Moore said. “That’s why our administration is stepping up to deliver real relief, focusing on driving down the cost of utility bills for Marylanders, and investing in local projects that make energy more reliable and affordable.”
The proposal would mobilize nearly $200 million from Maryland’s Strategic Energy Investment Fund to address rising energy costs, with the administration saying the plan is built around direct relief for Marylanders, infrastructure upgrades, and developing more local generation. About half of the funding would go directly to families, including $100 million for a new round of utility bill rebates expected to be administered this fall. The rebates would be in addition to the $200 million in direct electricity bill rebates delivered through the Next Generation Energy Act.
The legislation also targets Maryland’s transmission system, requiring utility companies to prioritize advanced transmission and grid-enhancing technologies when expanding grid capacity. State leaders say those tools can increase the capacity and efficiency of existing lines, improving reliability without immediately resorting to building new infrastructure. Under the bill, utilities seeking approval for new transmission lines would need to submit plans to implement those technologies before receiving approval from the Public Service Commission.
Another piece of the proposal sets aside $10 million for the Maryland Department of Transportation to identify opportunities for high-voltage transmission lines and battery storage along state and interstate highways. The administration says using existing highway rights-of-way could help bypass complex land acquisition and permitting, speeding up projects aimed at improving reliability across the state. Maryland Department of Transportation Acting Secretary Katie Thomson said the department supports the effort and will work with state energy partners to find practical solutions to lower costs and modernize the grid.
To promote more local energy generation, the bill would also establish a Solar and Energy Storage Gap Financing Program managed by the Maryland Energy Administration. The program would invest $70 million from the Strategic Energy Investment Fund to support clean energy projects, with the administration saying the goal is to spur local production by reducing financial uncertainty tied to federal changes affecting clean-energy tax credits. Maryland Energy Administration Director Kelly Speakes-Backman said the governor’s legislation, budget plans, and a recent executive order are all aimed at addressing rising costs for working families while keeping the system reliable.
The proposal also eliminates an existing 0.5% incentive that allows utilities to collect additional profits and would require utility companies to participate in PJM Interconnection, the regional grid operator. Supporters say the mandate would increase accountability and save Maryland families tens of millions of dollars each year. Maryland PIRG Senior Advisor Emily Scarr said requiring utility participation in regional planning would save customers about $20 million annually, while environmental groups including the League of Conservation Voters of Maryland and the Maryland Sierra Club praised the plan as a way to pair affordability with grid stability and climate goals.
Moore’s office says the bill builds on steps taken last year to lower energy costs, including the state’s Building an Affordable and Reliable Energy Future executive order, $200 million in energy rebates, and more than $130 million invested in clean energy and modernization programs in 2025, including county government energy modernization and the Decarbonizing Public Schools Program. The Lower Bills and Local Power Act is expected to be debated as part of the administration’s 2026 legislative push.