Maryland Files FERC Complaint Over $1.6B Data Center Power Bill

Maryland's Office of People’s Counsel (OPC) has filed a complaint with the Federal Energy Regulatory Commission (FERC) against PJM Interconnection, citing a projected $1.6 billion increase in electric bills for Maryland ratepayers over the next decade. This increase, averaging $345 per household, is attributed to transmission upgrades primarily driven by the boom in data centers in Northern Virginia. The OPC argues that PJM’s current cost-allocation rules unfairly burden Maryland customers with expenses from which they see little benefit. The article further notes that Maryland's energy policies, including early coal plant retirements and aggressive renewable mandates, contribute to the state's vulnerability by increasing its dependence on imported electricity. These policies, such as the Renewable Portfolio Standard and the Climate Solutions Now Act, have also led to higher compliance and wholesale energy costs. While data centers are accelerating demand with projections of 30 GW of new PJM load by 2030, critics suggest that Maryland's structural supply issues exacerbate the costliness and contentious nature of these transmission upgrades. The article concludes by emphasizing that Maryland's energy challenges stem from both external demand and its internal policy choices, advocating for a more balanced approach to energy generation to stabilize costs.