People’s Counsel urges quick order to opt out of PJM backstop to shield residential customers

The Office of People's Council presented the commission with a near-term plan to prevent residential customers in the BGE and PE service territories from bearing the potential costs of PJM's proposed reliability backstop procurement.

"Without taking action at the state level ... the PJM's reliability backstop procurement proposal will create 15 years of costs for the BGE and PE zones," William Fields told the commission, citing the 2026 PJM load forecast and the utility allocations. Fields said initial RBP allocations are roughly 18.9 megawatts to BGE and 116.5 megawatts to PE and estimated a nominal 15‑year exposure of approximately $79 million for BGE and $483 million for PE.

Fields urged the commission to adopt an "opt‑out" pathway now so utilities can request PJM not to procure resource adequacy megawatts for their zones. Under the Office's proposal, prospective large‑load customers in the affected zones would have three options: post collateral and commit to cover a specified number of RBP megawatts; secure a PJM offset by bringing new capacity; or participate in a peak‑shaving program for their assigned megawatts. Fields said the opt‑out request window opens September 30 and closes October 21 and that an order from the commission now is needed to preserve the state's options.

Commission staff supported moving quickly. Drew McAuliffe told the commission that staff "agrees the commission needs to make a determination as soon as possible" and recommended directing BGE and PE to present the three choices to affected customers and to file any required tariffs. Staff and OPC both said the practical downside of issuing an order and being denied by PJM is limited—the parties would remain where they began—but waiting risks losing the opt‑out opportunity.