Florida Takes Action As Americans Face $1 Billion Power Bill Rise

Florida Governor Ron DeSantis recently signed SB 484 into law at Florida Polytechnic University in Lakeland, directing the Florida Public Service Commission to ensure that large data center customers bear the full costs of necessary electrical infrastructure, transmission upgrades, and system expansions. This legislation aims to prevent these expenses from being shifted to residential utility bills, a move DeSantis emphasized as critical to protect individual Floridians from subsidizing wealthy tech companies. The new law also strengthens local governments' ability to block data center projects and permits temporary confidentiality agreements during negotiations with tech companies. The statewide action in Florida addresses a broader national concern regarding the rapid expansion of AI-driven data centers, which is contributing to increased electricity demand and utility costs across the United States. Maryland's Office of People’s Counsel, an independent state agency, has filed a complaint with the Federal Energy Regulatory Commission (FERC), arguing that Maryland residents could face a $1.6 billion collective hike in energy bills over the next decade. This is largely due to how PJM Interconnection LLC, a major U.S. grid operator, allocates transmission project costs, many of which are driven by the power demands of data centers, particularly those located in neighboring Virginia. The Office of People’s Counsel urged FERC to mandate that PJM allocate these transmission costs to the regions where the data centers are located or directly to the data center operators. This marks another instance where the agency has challenged the subsidization of out-of-state energy centers by Maryland ratepayers, previously opposing PJM's $5 billion transmission upgrade plan for Virginia data centers. Beyond Florida and Maryland, other states are also grappling with the impacts of data center growth. Maine became the first state to pass a statewide moratorium on large new data centers earlier this year, although it was subsequently vetoed by Governor Janet Mills. New York's Senate has also introduced a bill proposing a moratorium on new data center permits and requiring the Public Service Commission to mitigate impacts on electricity and gas rates for consumers. These legislative and regulatory efforts underscore a growing trend among states to address the financial and infrastructural pressures imposed by the expanding data center industry.