Maryland Consumer Advocate Challenges PJM Plan for Data Center Power Procurement
Maryland's Office of People's Counsel (OPC) is challenging a plan by regional grid operator PJM Interconnection to procure additional power capacity, largely to meet projected data center growth. The OPC argues this plan could impose hundreds of millions in costs on Maryland ratepayers if data center projects do not materialize, and has filed protests with federal and state regulators. The OPC is pushing for measures like "peak shaving" and stricter forecasting rules to protect consumers.
Maryland’s Office of People’s Counsel (OPC) is actively opposing a plan by regional grid operator PJM Interconnection to procure an additional 6,831 megawatts of generating capacity, largely in anticipation of future data center growth. The OPC argues that this plan, if approved by the Federal Energy Regulatory Commission (FERC), could impose an estimated $562 million in added electricity costs on Maryland households over 15 years, particularly if the projected data centers are delayed, canceled, or moved. The consumer advocate, joined by counterparts from Delaware, D.C., Illinois, and New Jersey, asserts that PJM has not sufficiently demonstrated the necessity of its "Reliability Backstop Procurement" (RBP) proposal and that it inadequately protects existing customers.
Concurrently, the OPC has petitioned the Maryland Public Service Commission (PSC) to act before PJM's capacity procurement is finalized on October 21. Citing the state's Utility RELIEF Act, OPC is urging the PSC to mandate that data centers participate in "peak shaving" programs, which reduce electricity use during periods of high demand. This action could enable Maryland utilities, including Potomac Edison and Baltimore Gas and Electric, to opt out of certain PJM capacity obligations and mitigate associated costs for ratepayers.
Maryland People’s Counsel David Lapp emphasized the urgency, stating that waiting for a FERC ruling might leave the PSC insufficient time to protect consumers from long-term capacity commitments. The OPC is also advocating for revised data center growth projections from Maryland utilities to PJM, insisting that forecasts should only include projects with binding commitments where developers agree to cover infrastructure costs. PJM, however, maintains that the procurement is vital to address a capacity shortfall for the 2028-2029 delivery year, aligning with principles from PJM state governors and the White House National Energy Dominance Council, which advocate for new large loads to bear their own costs.