Federal regulators reject major data center guardrails from regional grid operator for Maryland
The Federal Energy Regulatory Commission rejected PJM proposals that would have required data centers to reduce or shut off power use during grid emergencies. FERC said the plan improperly intruded on states’ authority over retail electricity rates, while PJM and Maryland’s ratepayer advocate consider possible revisions.
Federal regulators rejected PJM’s proposal to make data centers the first customers curtailed during power emergencies unless they provided enough new generation to cover their demand. The Federal Energy Regulatory Commission also postponed a separate special capacity auction for large-load data centers, finding elements of that proposal unjust and unreasonable while encouraging PJM to revise and resubmit it.
Maryland People’s Counsel David Lapp said compensation for data centers that are shut off could unfairly shift costs to existing customers and urged PJM to remove that provision. FERC did approve PJM’s creation of a registry for large-load customers, as PJM faces growing reliability concerns and record capacity prices driven largely by data center electricity demand.