By Ian Magruder and Molly Knoll
In an era when Democrats and Republicans often struggle to find common ground, both parties seem to agree on one pressing issue: the rising cost of electricity. This shared concern led to a significant moment of bipartisanship in Annapolis last week.
After nearly four hours of discussions regarding a large energy package spearheaded by Democratic lawmakers in Maryland, Senate Democrats rejected nearly every amendment proposed by Republicans. However, Republican Senator Justin Ready, representing Frederick and Carroll Counties, introduced an amendment focused on enhancing grid utilization—prioritizing affordability by emphasizing the importance of “getting more out of the grid we have.” This amendment was accepted unanimously by Democrats, led by Senate President Bill Ferguson from Baltimore City and Senator Brian Feldman from Montgomery County, who chairs the energy committee.
So, what does grid utilization mean, and why is this concept garnering support from leaders across the political spectrum? The electrical grid was originally designed to withstand peak capacity, ensuring that during the hottest summer afternoons or the coldest winter mornings, essential services like air conditioning, heating, and lighting remain operational even under significant strain. However, this capacity often means that for most hours throughout the day, a substantial portion of the grid goes unused. On average, only about half of America’s electrical grid capacity is utilized.
Consider the analogy of a fleet of airplanes flying with half of their seats unoccupied. If more seats could be filled, the overall cost of flying would decrease for each passenger, as fixed expenses would be distributed over a greater number of tickets sold. The same principle applies to our electrical grid. By transmitting more electricity through the existing grid infrastructure that has already been constructed and paid for, we could potentially reduce costs for everyone.
This is not merely a theoretical discussion. A recent report by The Brattle Group estimates that a 10% increase in grid utilization could save Americans between $110 billion and $170 billion on their utility bills over the next decade. The real question now is how achievable such an increase in grid utilization is and what strategies could facilitate this change.
Fortunately, a variety of technologies exist that can effectively manage the grid and enhance overall utilization. These range from batteries that charge during periods of low demand and discharge when necessary, to demand response programs and “grid-enhancing technologies” that make better use of existing infrastructure. While the solutions are available, the current challenge remains that we aren’t significantly incentivizing or measuring grid utilization.
Returning to Senator Ready’s significant amendment, it proposes that Maryland utilities monitor grid utilization at the substation and feeder levels. These metrics would then be reported to the Public Service Commission, the regulatory body overseeing the Maryland grid, and for the first time, be incorporated into the grid planning process.
Although Senator Ready holds a leadership position within the Maryland Senate Republicans, he may also have a supporter in Governor Wes Moore. Last December, Governor Moore issued an executive order emphasizing energy affordability and designating “grid optimization” as a crucial method for reducing electricity costs. Recently, Virginia’s newly elected Governor Abigail Spanberger also took up similar legislation, which passed with bipartisan support in the Virginia legislature last month.
As the Maryland House prepares to deliberate this vital policy before the session concludes on April 13, many are hopeful that common-sense solutions can bridge the divide between parties.
Ian Magruder is the Founder and Executive Director of Utilize Coalition, a nonprofit initiative aimed at increasing grid utilization to deliver electricity that is more affordable, expedient, and reliable.
Molly Knoll is a policy consultant with Align Energy Advisors and a former Senior Advisor to the Maryland Public Service Commission.
