Maryland Challenges $1.6 Billion Power Bill Tied to Out-of-State Data Centers

The complaint filed with the Federal Energy Regulatory Commission (FERC) targets PJM’s current methodology for allocating transmission costs. According to the state office, the grid operator’s policy socializes the expenses of surging power demands driven primarily by AI infrastructure located outside Maryland, particularly in Virginia. David S. Lapp, Maryland’s People’s Counsel, characterized the rules as broken, noting that local customers are being billed for investments that provide them no benefit and for which they bear no responsibility.

Virginia currently serves as the global epicenter for data center development, recording a 660% increase in energy consumption since 2013. PJM anticipates the trend will accelerate, projecting 32 gigawatts of peak load growth across its territory by 2030, with roughly 30 gigawatts attributed directly to data centers. Maryland regulators are now demanding that FERC require PJM to assign these costs specifically to the zones where the facilities are located. The move follows broader political friction surrounding the energy-intensive industry, including federal legislative efforts to impose a moratorium on construction until stronger environmental and consumer safeguards are established.