Maryland consumers face $2B grid upgrade bill for out-of-state AI data centers

The Maryland Office of People’s Counsel (OPC) has filed a complaint with the Federal Energy Regulatory Commission (FERC) against PJM Interconnection, LLC, the largest U.S. electricity transmission company serving 13 states and Washington, D.C. PJM plans to charge Maryland $2 billion of its $22 billion grid upgrade, driven by data center demand for AI. The OPC argues this will cost Maryland consumers an extra $1.6 billion over ten years: $823 million for residential (≈$345 per customer), $146 million for commercial (≈$673 per customer), and $629 million for industrial customers (≈$15,074 per customer). Maryland People’s Counsel David S. Lapp stated that customers are paying for infrastructure benefiting data centers without causing the need or receiving meaningful benefit. The OPC contends that PJM’s cost allocation is unfair, as other states like Virginia, Ohio, Pennsylvania, and Illinois host more data centers. Maryland advocates for direct billing to areas where upgrades are built or to tech companies per President Donald Trump’s “ratepayer protection pledge.” The OPC cites “extreme uncertainty” in load growth from data centers, noting utilities benefit even if demand fails to materialize. Nationwide, about 69 jurisdictions have moratoriums on such projects, and nearly half of Americans oppose data centers in their neighborhoods, with some disputes turning violent.