Governor Moore Announces the Lower Bills and Local Power Act to Combat Rising Utility Costs and Deploy Affordable Local Energy
ANNAPOLIS, MD — Governor Wes Moore announced the Lower Bills and Local Power Act as part of the Moore-Miller Administration’s 2026 legislative agenda. Focused on securing an affordable and reliable energy future for Maryland, the legislation introduces measures to secure financing for local clean energy projects, modernize the electric grid, and provide additional direct energy bill rebates 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,” said Gov. Moore. “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.”
Advancing the governor’s Building an Affordable and Reliable Energy Future executive order, the Lower Bills and Local Power Act mobilizes nearly $200 million from the Strategic Energy Investment Fund—which reinvests Alternative Compliance Payments from utilities—to address rising energy costs that impact Maryland families. The legislation acts through three pillars: providing direct relief to Marylanders, modernizing infrastructure, and developing local generation.
Approximately half of the funding mobilized by the legislation will be directed to Maryland families, with $100 million allocated for a new round of utility bill rebates. The rebates—to be administered this fall—are in addition to the $200 million in direct electricity bill rebates delivered by Governor Moore and the Maryland General Assembly through the Next Generation Energy Act.
To modernize Maryland’s transmission infrastructure, the Lower Bills and Local Power Act requires utility companies to prioritize advanced transmission technologies and grid-enhancing technologies when expanding grid capacity. The modern technologies are designed to increase the capacity and efficiency of existing transmission lines, increasing reliability for ratepayers without requiring new infrastructure. Under the new requirements, utilities seeking approval to build new transmission lines must submit plans to implement these technologies before receiving approval from the Public Service Commission.
The governor’s legislation allocates $10 million in Strategic Energy Investment Fund dollars for the Maryland Department of Transportation to identify opportunities for high-voltage transmission lines and battery storage projects along state and interstate highways. By leveraging existing state highway right-of-way, Maryland can bypass complex land acquisition and permitting processes, which will rapidly deploy the high-voltage capacity necessary to improve grid reliability across the state.
“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 Maryland Department of Transportation Acting Secretary Katie Thomson. “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.”
To promote local energy generation, the legislation establishes the Solar and Energy Storage Gap Financing Program. Managed by the Maryland Energy Administration, the program will invest $70 million from the Strategic Energy Investment Fund to fund clean energy projects. The investment will spur local, clean energy production by mitigating financial uncertainty caused by the Trump Administration’s cuts to the Investment Tax Credit under the One Big Beautiful Bill Act.
“The Moore-Miller Administration is committed to moving as quickly as possible to a more affordable, reliable, clean energy system,” said Maryland Energy Administration Director Kelly Speakes-Backman.“Governor Moore’s legislation introduced today, his budget, and the executive order issued in December all aim at addressing rising energy costs for working families, making sure the lights stay on, and moving us on a path to clean energy.”
The legislation also eliminates the current 0.5% incentive that allows utilities to collect additional profits and mandates that utility companies join Maryland’s regional transmission organization, PJM Interconnection. The mandate will promote accountability for all utilities, saving Maryland families tens of millions of dollars annually.
“In the face of rapidly rising utility bills, our state leaders need to scrutinize every cost that is being charged to ratepayers,” said Maryland Public Interest Research Group Senior Advisor Emily Scarr. “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 League of Conservation Voters Maryland Executive Director Kim Coble. “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.”
“Governor Moore understands that we can reduce utility bills, create a stable electricity grid and pursue our climate goals all at once,” said Maryland Sierra Club Director Josh Tulkin. “Solar, storage, advanced transmission technologies, demand response and better grid management, can reduce peak load and save money and energy. We look forward to working with the Governor and General Assembly on accelerating these win-win common sense strategies.”
The governor’s legislation builds upon historic actions taken by the Moore-Miller Administration last year to lower energy costs for Maryland families and businesses. In addition to signing the Building an Affordable and Reliable Energy Future executive order and delivering $200 million in energy rebates, the governor invested more than $130 million into clean energy and modernization programs in 2025 alone, including funding for county government energy modernization and the Decarbonizing Public Schools Program.
