Energy costs and Policy: PJM Director Warns Maryland Lawmakers
Annapolis, MD – January 24, 2026 – Rising energy costs are a growing concern across the Mid-Atlantic region, and Maryland legislators are increasingly focused on the policies driving these increases. Recently, Jason Stanek, Executive Director of PJM Interconnection, addressed a panel of lawmakers from Maryland, Pennsylvania, and other states, offering insights into the complexities of the energy market and the impact of current policies. This article explores the key issues raised during the hearing, Stanek’s expertise, and the potential implications for consumers.
Understanding PJM Interconnection
PJM Interconnection is a regional transmission organization (RTO) that coordinates the flow of electricity to 65 million people in 13 states, including Maryland, and the District of Columbia. Essentially, PJM ensures the reliable delivery of wholesale electricity, manages the grid, and runs competitive wholesale electricity markets. Its role is crucial in maintaining a stable and affordable energy supply. [3] PJM does not directly sell electricity to consumers; it facilitates the transactions between generators and utilities.
Jason Stanek: From Maryland Regulator to PJM Leadership
Jason Stanek brings a unique and valuable perspective to PJM. Prior to joining PJM in January 2024 as Executive Director – Governmental Services, he served as Chairman of the Maryland Public Service Commission from 2018 to 2023. [[2]] In this role, he oversaw the regulation of Maryland’s utilities and played a key role in shaping the state’s energy policy.Before his time in Maryland,Stanek served as Senior Counsel to the U.S.House of Representatives’ Committee on Energy and Commerce, advising on national energy policy. [[2]] This combination of regulatory and legislative experience makes him uniquely qualified to navigate the complex challenges facing the energy sector.
The Concerns Raised in Annapolis
During the hearing in Annapolis, Stanek and other experts warned legislators that certain energy policies are contributing to rising costs for consumers. While the specific policies discussed weren’t detailed in initial reports, the general concern centers on the balance between renewable energy goals and grid reliability, and also the costs associated with transitioning to a cleaner energy future. [[1]]
The Impact of renewable Energy Policies
Many states, including maryland, have aspiring goals for increasing the amount of electricity generated from renewable sources like solar and wind. While these goals are environmentally beneficial, integrating these intermittent resources into the grid can be challenging and expensive. unlike conventional power plants that can generate electricity on demand, solar and wind power are dependent on weather conditions. This intermittency requires investments in energy storage solutions (like batteries) and grid upgrades to ensure a reliable power supply.
Capacity Markets and Grid Reliability
PJM operates capacity markets, which are designed to ensure that there is enough electricity generation available to meet future demand. Generators are paid for being available to provide power, even if they aren’t actually generating it at a given moment. Concerns have been raised that changes to capacity market rules,perhaps influenced by state energy policies,could discourage investment in reliable generation sources,leading to higher prices and potential grid instability.
Looking Ahead: Balancing Costs and Sustainability
The discussion in Annapolis highlights the critical need for a thoughtful and balanced approach to energy policy. Policymakers must consider the trade-offs between environmental goals,affordability,and grid reliability. Stanek’s experience at both the state and regional levels positions him to play a key role in facilitating these conversations.
Key Takeaways:
- Rising energy costs are a major concern for consumers and policymakers.
- PJM Interconnection plays a critical role in maintaining grid reliability and managing wholesale electricity markets.
- Jason Stanek’s unique experience as a former state regulator and federal advisor brings valuable expertise to PJM.
- Renewable energy policies, while beneficial for the environment, can pose challenges for grid integration and affordability.
- A balanced approach is crucial to ensure a sustainable, reliable, and affordable energy future.
As Maryland and other states continue to pursue ambitious energy goals, ongoing dialog between policymakers, grid operators, and stakeholders will be essential to navigate these challenges and ensure a secure and affordable energy supply for all.