Maryland Lawmakers Press PJM Over 30% Bill Surge as Data Centers Drive Capacity Costs
Updated
Updated · thebanner.com · May 12
Maryland Lawmakers Press PJM Over 30% Bill Surge as Data Centers Drive Capacity Costs
9 articles · Updated · thebanner.com · May 12
Maryland officials used PJM Interconnection’s annual meeting in Baltimore to demand action on power bills that have climbed nearly 30% since 2021, saying ratepayers need stronger affordability and reliability protections.
Gov. Wes Moore said PJM lacks a clear plan, urged 15-year price certainty for customers, and criticized the grid operator for taking too long to connect new generation projects.
PJM said rising electricity costs are a regional challenge, though governors including Moore already pushed the 2026-27 capacity auction price cap lower in January through 2030 to limit further supply-cost increases.
Data centers are now the central flashpoint: Moore and a multistate lawmaker coalition say large-load customers should fund their own power and transmission upgrades and operate flexibly during peak demand.
Clean-energy advocates and Democratic lawmakers also argue PJM’s capacity market favors fossil fuels; a Synapse Energy Economics study estimated broader clean-energy access could save ratepayers about $500 a year.
With a massive power shortfall looming, can PJM's proposed market reforms actually prevent future blackouts?
With PJM's new queue favoring natural gas, can renewable energy still solve the looming capacity crisis?
Data centers are booming, but who will ultimately pay for the massive grid upgrades they require?
Maryland’s $2 Billion Grid Dispute: Data Center Growth Triggers FERC Action and Calls for Fair Energy Cost Allocation
Overview
Maryland has formally challenged PJM Interconnection’s method for dividing electricity transmission costs, arguing that its residents and businesses are unfairly forced to pay for expensive grid upgrades mainly driven by the rapid growth of data centers in other states. The state’s complaint to the Federal Energy Regulatory Commission highlights a broader dispute over who should pay for the rising power demands of the booming AI-driven data center industry. At the core, Maryland claims PJM’s cost allocation formula is flawed, causing local ratepayers to subsidize projects that primarily benefit others, and raising urgent questions about fairness and the future of energy infrastructure.