Maryland OPC Rising PJM Transmission Costs
The Maryland Office of People's Counsel March 2026 report finds transmission charges represent about 10 percent of Maryland electric bills, with $5.4 billion in new PJM baseline and local projects allocated to the state. Data center load in Virginia and Ohio drives much of the growth. Cultivators cannot shop away TEC and NITS charges.
By Jason Taken, Founder, Jaken Energy
Updated September 12, 2026Transmission is 10 percent and climbing
The Maryland Office of People's Counsel published PJM Transmission Cost Impacts on Electricity Customers in Maryland in March 2026 (corrected March 25, 2026) [md-opc-transmission-2026]. Key finding: transmission charges represent roughly 10 percent of total electric bills for most Maryland customers, with rapid increases likely to continue [md-opc-transmission-2026].
For residential customers, OPC notes transmission can be about 10 percent of total costs and 16 percent of supply-side costs [md-opc-transmission-2026]. Capacity market costs for 2025 also represented about 10 percent of total bills for most customers [md-opc-transmission-2026].
Cannabis cultivators with heavy kWh and kW still pay transmission on every kWh delivered, whether on default service or retail supply.
$5.4 billion allocated to Maryland
OPC cites about $5.4 billion in new transmission costs from PJM baseline and local projects allocated to Maryland [md-opc-transmission-2026]:
| Project type | Share of $5.4B | Purpose |
|---|---|---|
| Baseline (regional reliability) | ~59% ($3.2B) | RTO-wide needs [md-opc-transmission-2026] |
| Local (zone-specific) | ~41% ($2.2B) | Local reliability [md-opc-transmission-2026] |
Load growth from data centers, especially in Northern Virginia and Ohio, is a primary driver of recent increases [md-opc-transmission-2026]. PJM forecasts 42 percent RTO peak growth through the planning horizon while Maryland peak grows ~12 percent [md-opc-transmission-2026]. Maryland's share of regional peak falls from 8% to 6%, yet cost allocation methods still assign large baseline spending to Maryland customers [md-opc-transmission-2026].
TEC, NITS, and the bill line you cannot shop
Retail supply shopping in Maryland changes energy commodity pricing. Transmission cost recovery appears on utility bills through components such as TEC (Transmission Enhancement Charge) and NITS (Network Integration Transmission Service) [md-opc-transmission-2026].
OPC Figure 10 tracks combined NITS and TEC rates for Pepco, BGE, DPL, and APS [md-opc-transmission-2026]. Those lines rise even when you fix supply at a competitive supplier.
| Bill bucket | Shoppable? | 2026 trend |
|---|---|---|
| Retail/default supply | Yes | ISO/PJM energy + capacity |
| Distribution + demand | No | Utility rate cases |
| Transmission (TEC/NITS) | No | OPC: rapid PJM project growth [md-opc-transmission-2026] |
Read understanding your commercial utility bill and Maryland switching together, not as substitutes.
Brandon Shores example: local projects bite
OPC highlights the Brandon Shores Deactivation Project costing PJM customers over $1.6 billion in capital, with Maryland paying 66% (~$1.1 billion) and BGE zone customers over $900 million [md-opc-transmission-2026]. Figure 4 in the report shows BGE 2028 baseline costs nearly double prior-year chart maxima because of this project [md-opc-transmission-2026].
Transmission capital depreciates over 30–40 years; customers may pay three to four times project capital through returns and O&M in revenue requirements [md-opc-transmission-2026].
A cultivator signing a 36-month fixed supply contract still inherits decades-long transmission amortization on the delivery side.
Worked example: 10% transmission share
Inputs we chose for a Pepco C&I account with $48,000/month total electric bill.
| Component | OPC benchmark | Monthly |
|---|---|---|
| Total bill | 100% | $48,000 |
| Transmission ~10% [md-opc-transmission-2026] | $4,800 | |
| If transmission rises 25% (illustrative) | +$1,200/month |
If supply shopping saves 1.5¢/kWh on 120,000 kWh ($1,800/month) but transmission rises $1,200/month, net savings shrink to $600/month.
That math is why OPC recommends cost causation reforms assigning data center load its share of transmission [md-opc-transmission-2026]. Pennsylvania's parallel policy push appears in our Shapiro PJM backstop post.
OPC recommendations cultivators should watch
OPC urges Maryland policymakers to [md-opc-transmission-2026]:
- Improve state forecasting of large loads
- Advocate for PJM/FERC oversight and competitive transmission procurement
- Strengthen state CPCN review for local projects
- Align costs with cost causation for data centers
- Promote grid-enhancing technologies instead of defaulting to mega-projects
Pepco's 2026 true-up (see Maryland Pepco true-up post) addresses distribution multi-year balances, not this $5.4B transmission pipeline [md-opc-transmission-2026].
Exelon investor materials cited in OPC project $4.8 billion transmission spending 2026–2028 across Maryland utilities, more than double the prior three-year period [md-opc-transmission-2026].
Takeaway
Maryland OPC's March 2026 report puts transmission at ~10% of bills today with $5.4 billion in new PJM projects allocated to the state [md-opc-transmission-2026]. Data center load outside Maryland drives much of the spend [md-opc-transmission-2026].
Cultivators can shop supply, but TEC/NITS transmission recovery is a delivery fact until policy or project lists change. Budget expansions using supply savings alone will miss a growing share of the bill.
Exelon $4.8B transmission spend 2026–2028
OPC cites Exelon investor materials projecting $4.8 billion transmission spending 2026–2028 across Maryland utilities, more than double 2023–2025 levels [md-opc-transmission-2026]. Pepco, BGE, DPL, APS zones all carry NITS/TEC exposure.
Brandon Shores and BGE 2028 spike
The Brandon Shores Deactivation Project drives BGE 2028 baseline costs in OPC charts [md-opc-transmission-2026]. BGE-served grows feel different timing than Pepco-only operators even within Maryland.
Data center 42% vs Maryland 12% peak growth
PJM forecasts 42% RTO peak growth versus 12% Maryland peak growth, yet cost allocation still assigns baseline projects broadly [md-opc-transmission-2026]. Policy fights over cost causation matter more than local load discipline alone.
Grid-enhancing technology alternative
OPC recommends grid-enhancing technologies before defaulting to mega-lines [md-opc-transmission-2026]. Cultivators benefit as ratepayers when GETs defer TEC rises even though they cannot direct PJM planning.
Supplier contract transmission pass-through audit
Audit retail contracts for FERC transmission pass-through definitions. Some fixed deals cap transmission for 12 months then reset, mimicking utility volatility with less transparency [md-opc-transmission-2026].
FERC Order 1000 and regional cost allocation debate
OPC's March 2026 report (corrected March 25, 2026) situates rising bills in PJM baseline transmission approved under FERC oversight and regional cost allocation rules [md-opc-transmission-2026]. Baseline reliability projects assigned RTO-wide can land on Maryland meters even when Maryland peak grows ~12% while PJM RTO peak grows ~42% [md-opc-transmission-2026].
Maryland's share of regional peak falls from 8% to 6% in OPC's framing, yet cost allocation methods still assign large baseline spending to Maryland customers [md-opc-transmission-2026]. Cultivators cannot shop away TEC/NITS; policy advocacy is the long lever.
Brandon Shores and BGE zone 2028 spike
The Brandon Shores Deactivation Project costs PJM customers over $1.6 billion in capital, with Maryland paying 66% ($1.1 billion) and BGE zone customers over $900 million [md-opc-transmission-2026]. OPC Figure 4 shows BGE 2028 baseline costs nearly double prior chart maxima because of this project [md-opc-transmission-2026].
Pepco-only operators and BGE-served operators face different timing on transmission riders even within Maryland. Transmission capital depreciates over 30–40 years; customers may pay three to four times project capital through returns and O&M [md-opc-transmission-2026].
Exelon $4.8B transmission spend 2026–2028
OPC cites Exelon investor materials projecting $4.8 billion transmission spending 2026–2028 across Maryland utilities, more than double 2023–2025 levels [md-opc-transmission-2026]. That pipeline exceeds Pepco's 2026 true-up dollars discussed in our Pepco multi-year plan post.
When modeling supply savings from retail contracts, stress-test transmission rising 25% on a $4,800/month transmission slice (10% of a $48,000 bill) [md-opc-transmission-2026]. Net savings shrink quickly. Read Maryland commercial electricity rates and understanding your commercial utility bill.
Synapse report and Figure 10 NITS/TEC charts
OPC commissioned Synapse Energy Economics for the March 2026 transmission report [md-opc-transmission-2026]. Figure 10 combined NITS and TEC rates for Pepco, BGE, DPL, and APS [md-opc-transmission-2026]. Download the PDF and map Figure 10 trends to your utility's rider lines before attributing bill spikes to supply alone [md-opc-transmission-2026].
Grid-enhancing technologies as ratepayer lever
OPC recommends grid-enhancing technologies before defaulting to mega-lines [md-opc-transmission-2026]. Cultivators benefit as ratepayers when GETs defer TEC rises even though they cannot direct PJM planning meetings [md-opc-transmission-2026].
Capacity also near 10% of bills
OPC notes 2025 capacity market costs also represented about 10 percent of total bills for most Maryland customers [md-opc-transmission-2026]. Transmission plus capacity can exceed 20% combined before delivery demand enters the stack [md-opc-transmission-2026]. Retail fixed supply quotes may exclude one or both pass-throughs; read fixed vs index contracts.
Maryland peak share falling in PJM forecasts
OPC explains Maryland's share of regional peak falls from 8% to 6% while PJM RTO peak grows ~42% versus Maryland ~12% [md-opc-transmission-2026]. Cultivators cannot load-shed their way out of baseline transmission assigned RTO-wide; policy cost causation reforms are the systemic fix OPC urges [md-opc-transmission-2026].
DPL and APS zone operators
Figure 10 in the OPC report covers Pepco, BGE, DPL, and APS NITS/TEC trends [md-opc-transmission-2026]. Delmarva Maryland (DPL) operators near Delaware borders should map transmission riders separately from Delaware SOS supply in Delmarva SOS post even though both sit in PJM [md-opc-transmission-2026].
OPC policy recommendations at a glance
OPC urges Maryland to improve state forecasting of large loads, advocate for PJM/FERC oversight, strengthen CPCN review, align costs with cost causation for data centers, and promote grid-enhancing technologies [md-opc-transmission-2026]. Cultivators benefit as ratepayers when GETs defer projects, even without a seat at PJM planning tables [md-opc-transmission-2026].
Budget expansions using supply savings alone will miss a growing share of the bill until TEC/NITS trends change or cost causation reforms advance [md-opc-transmission-2026].
Synapse report preparation
OPC commissioned Synapse Energy Economics for the March 2026 transmission report [md-opc-transmission-2026]. Figure 10 NITS/TEC charts are the starting point for mapping bill riders to OPC projections on Pepco statements.
Frequently asked questions
What share of a Maryland electric bill is transmission?
OPC reports transmission charges represent roughly 10 percent of total customer electric bills for most Maryland customers, with rapid increases expected.
How much new transmission cost is allocated to Maryland?
The OPC report cites about $5.4 billion in new transmission costs from approved and planned PJM baseline and local projects allocated to Maryland, with baseline reliability projects about 59 percent of that total.
Can switching suppliers avoid transmission charges?
No. Transmission cost recovery flows through utility TEC and NITS components on delivery bills regardless of retail supply choice.
Why is Maryland paying for projects driven by other states?
OPC explains PJM's regional cost allocation assigns baseline projects across the RTO footprint, while data center load growth in Virginia and Ohio is a primary driver of recent transmission spending.
Does this relate to Pepco's 2026 true-up?
True-ups recover distribution multi-year plan balances. Transmission is a separate PJM-regulated cost stream discussed in OPC's March 2026 transmission report.
Related reading
- Maryland Commercial Electricity Rates for Cannabis Facilities: SOS Tiers, Utility Classes, and PJM Context
Maryland commercial power at 16.84 cents/kWh vs. the U.S. average, BGE and Pepco delivery classes, Standard Offer Service tiers, and PJM capacity pricing.
- How to Switch Electricity Suppliers in Maryland: A Step-by-Step Guide for Cannabis Businesses
Step-by-step Maryland supplier switching for cannabis accounts on BGE, Pepco, Delmarva, and Potomac Edison: SOS tiers, enrollment, and contract rules.
- Understanding Your Commercial Utility Bill (Line-Item Breakdown)
Supply vs delivery, customer charge, distribution demand, transmission, capacity, riders, power factor, and taxes, with an annotated sample bill for a grow.
- Maryland PSC Cuts Pepco Multi-Year Rate Plan True-Up
Maryland PSC granted Pepco $13.36M of a $30.6M multi-year true-up, about 64 cents per month for average residential bills. Base rate case pending.
- Shapiro PJM Backstop Costs and Pennsylvania Data Centers
Gov. Shapiro ordered PA PUC rules so data centers pay PJM backstop auction costs, not other customers. What PA cannabis grows should track on capacity bills.
Jason Taken founded Jaken Energy, the commercial energy procurement practice behind this site. He works with licensed cannabis operators in deregulated electricity markets to lower supply rates, manage demand charges, and evaluate efficiency upgrades.
Sources
Inline citations in this article, such as [md-opc-transmission-2026], refer to the entries below. Links open the primary source in a new tab.
- [md-opc-transmission-2026]PJM Transmission Cost Impacts on Electricity Customers in Maryland (March 2026, corrected 3/25/2026) — Maryland Office of People's Counsel. Accessed 2026-09-12.