Maryland utility advocates: AI data centers in other states could drive up electric bills for Marylanders

The Maryland Office of People's Counsel has lodged a formal complaint with the Federal Energy Regulatory Commission (FERC) against PJM Interconnection, the regional grid operator. Filed on May 7, the complaint alleges that Maryland ratepayers are being unfairly forced to bear billions of dollars in transmission upgrade costs primarily driven by the exponential growth of data centers in neighboring states such as Northern Virginia, Ohio, Illinois, and Pennsylvania. Maryland People’s Counsel David Lapp stated that without FERC intervention, Maryland customers face paying billions for infrastructure upgrades that primarily benefit data centers located outside the state. The complaint highlights that PJM has approved over $22 billion in transmission projects in the last three years, with Maryland customers potentially responsible for approximately $2 billion, which could add $1.6 billion to their electric bills over the next decade. Utilities serving the Eastern Shore, like Delmarva Power and Choptank Electric Cooperative, could also see their customers impacted. The filing points to roughly 30 gigawatts of projected load growth across PJM by 2030 being tied to data centers, with some Virginia utilities receiving tens of thousands of megawatts in new data center power requests. The Office of People's Counsel also raised concerns about "phantom" data center demand, where developers submit requests in multiple states, leading utilities to potentially fund upgrades for projects that may not materialize. The state is asking federal regulators to modify how PJM allocates these transmission costs to ensure fairness for Maryland customers.