Maryland Residents Hit with $2B Grid Upgrade for Out-of-State AI Data Centers — State Files FERC Complaint

The Maryland Office of People's Counsel (OPC) filed a complaint with the Federal Energy Regulatory Commission (FERC) regarding PJM Interconnection's plan to charge Maryland consumers $2 billion of the $22 billion spent on grid upgrades to accommodate AI data center demand. According to the OPC press release, 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).

Key Details

• PJM Interconnection is the largest U.S. electricity transmission company, covering 13 states plus Washington, D.C.
• The $2 billion allocated to Maryland is part of a $22 billion total grid upgrade driven by data center demand.
• Maryland People's Counsel David S. Lapp: “Without FERC action, Maryland customers face paying billions for transmission infrastructure that PJM is advancing to benefit data centers.” He added that cost allocation rules are “broken” and Maryland customers “have neither caused the need for these billions in new transmission projects nor will they meaningfully benefit from them.”

Context

This case reflects a growing tension as AI data centers (often built by out-of-state tech companies) push grid expansion costs onto local ratepayers. PJM's cost allocation methodology is being challenged for favoring large new loads over existing customers.