Power Generation, Transmission, and Use

Markets, Regulation, and Oversight

Impacts of Power Generation and Transmission

Looking Ahead


CEIR Report Map


Maryland Power Plants and the Environment (CEIR-18)

Chapter 2 – Power Generation, Transmission, and Use

As a basis for discussing the impacts of power plants in Maryland, it is helpful to understand how electricity is generated, transmitted, and used within the state. This chapter provides information on the electric industry in Maryland from generation to final consumption.

Click to OpenFigure 1. Maryland's Electricity MarketMaryland’s electricity industry is functionally separated into three lines of business: generation and supply; transmission; and distribution (see sidebar). While customers are billed for each of these three separate functions, most only receive one consolidated electric bill. The generation and supply of electricity is not price-regulated in Maryland; prices are established by the competitive wholesale and retail electricity markets. The high-voltage bulk electric transmission system is a monopoly function, regulated by the Federal Energy Regulatory Commission (FERC), and the distribution of electricity is a monopoly function provided by local utilities (for more information on FERC see Section 3.4.1). It is therefore subject to price and quality-of-service regulation by the Maryland Public Service Commission (PSC).

Retail competition for power supply provides Maryland consumers with an opportunity to choose their own electricity suppliers. For more information about electric choice, visit the PSC website.

Maryland's Electricity Market

 Maryland's Electricity Market