Gov. Wes Moore announced the Lower Bills and Local Power Act as part of the Moore-Miller administration’s 2026 legislative agenda. Its goal is to combat rising utility costs and make better use of local, affordable energy sources.
The legislation introduces ways of paying for local clean energy projects, modernizing the electric grid, and giving rebates directly to Maryland families.
“Energy policy is about more than megawatts and transmission corridors—it is 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.”
In December 2025, Moore signed an executive order with similar overarching goals called “Building an Affordable and Reliable Energy Future.” The order was a response to data showing that residential energy rates had risen 44% since 2020. The legislation Moore put forward is in line with that order, using nearly $200 million from the Strategic Energy Investment Fund to address rising energy costs that are impacting Maryland households.
The Lower Bills and Local Power Act is structured as a three-pillared approach: providing direct relief to Marylanders, modernizing infrastructure, and developing local generation.
For direct relief, approximately half the funding from the legislation – $100 million – would be allocated to Maryland families for a new round of utility bill rebates in the fall. This is in addition to the $200 million already delivered through the Next Generation Energy Act.
As for modernizing Maryland’s transmission infrastructure, the bill requires utility companies to use the most advanced technology that would best enhance the grid when expanding capacity. Under the new requirements, utilities would have to submit plans and receive approval from the Public Service Commission before they could build new transmission lines.
To develop local generation of energy, Moore’s legislation allocates $10 million from the Strategic Energy Investment Fund to the Maryland Department of Transportation (MDOT) for finding ways to transmit energy along state and interstate highways. MDOT would use the funds to “identify opportunities for high-voltage transmission lines and battery storage projects” that could leverage the highway’s right-of-way that already exists. The state would not need to buy additional land, making the process of deploying high-voltage capacity for improved grid performance much simpler and faster.
“The Maryland Department of Transportation is a proud partner and supporter of the Moore-Miller Administration’s efforts to modernize the state’s energy grid and lower energy costs,” said Katie Thomson, acting secretary of MDOT. “With Governor Moore’s Lower Bills and Local Power Act, I look forward to the continued collaboration with our state energy partners, doing what the Department does best—finding practical solutions that keep Maryland moving toward a more affordable, sustainable future.”
The legislation also eliminates the 0.5% incentive that allows utilities to collect extra profits and requires they joined Maryland’s regional transmission organization, PJM Interconnection, promoting accountability for all utilities.
“In the face of rapidly rising utility bills, our state leaders need to scrutinize every cost that is being charged to ratepayers,” said Emily Scarr, senior advisor at Maryland Public Interest Research Group. “Gov. Moore’s proposal to require utility participation in regional grid planning and management will save Maryland utility customers twenty million dollars a year.”
“We support Governor Moore’s initiative to address energy affordability, especially after the reduction of federal funds,” said Kim Coble, executive director of League of Conservation Voters Maryland. “By financing shovel-ready solar plus storage projects, this legislation ensures utility accountability and prioritizes the most cost-effective, rapidly deployable energy sources making energy more affordable for all Marylanders.”
