Maryland state regulators have filed a complaint with the Federal Energy Regulatory Commission challenging an extra 0.5 percentage point return that transmission owners, including utilities operated by Exelon and FirstEnergy, earn through their membership in the PJM Interconnection regional transmission organization. The complaint aims to eliminate what Maryland officials view as an unjustified financial benefit to the transmission operators.
The contested return adder has been a source of contention among regulators who argue that the premium lacks adequate justification and translates to higher costs for consumers. According to the complaint, Maryland regulators contend that transmission owners should not receive additional compensation simply for participation in PJM, particularly when such costs may be passed along to ratepayers in the region.
The filing marks an escalating effort by state regulators to scrutinize the financial arrangements between major utilities and regional grid operators, reflecting broader debates over transmission investment incentives and rate design in the nation's competitive electricity markets. The outcome could influence how other states approach similar compensation structures with their transmission operators.