Maryland Power Generation Falls As Data Center Demand Grows
Maryland's power generation capacity has declined while data center demand is growing, leading to concerns in Charles County about grid reliability and electric bills. The Maryland Office of People's Counsel has filed a complaint with the Federal Energy Regulatory Commission (FERC) challenging Maryland customers' share of new regional transmission costs.
Maryland has seen a significant decrease in power generating capacity since 2018, while electricity demand, primarily driven by data centers, continues to rise across the PJM Interconnection grid. Jason Stanek, PJM's executive director of governmental services, briefed Charles County commissioners, emphasizing that data centers are built faster than new power plants and urging Maryland to increase generation capacity while retaining existing resources.
Commissioner Vice President Ralph Patterson invited Stanek to brief the board after hearing him speak about regional electricity challenges. Commissioner Gilbert Bowling questioned the benefits for Charles County residents if the Morgantown power plant were to restart, demanding local advantages for bearing environmental impacts and advocating for lower local electric bills. Commissioner Amanda Stewart raised concerns about forecasting future power needs for land-use decisions, suggesting a discussion with Southern Maryland Electric Cooperative (SMECO).
The Maryland Office of People’s Counsel highlighted that data center demand accounts for nearly all projected electricity growth in the PJM region through 2036. Deputy People’s Counsel William Fields explained that plans for data centers elsewhere are already impacting electricity prices and transmission line development. His office has filed a complaint with the Federal Energy Regulatory Commission (FERC) contesting Maryland customers' share of new regional transmission costs, arguing that data center developers should be fully responsible for the costs their projects create. Fields also noted that approximately 1,000 megawatts of projected data center demand might be removed from PJM's 2027 forecast due to developers failing to make sufficient financial commitments.