Maryland Lawmakers Urge FERC to Address Rising Electricity Costs Due to Out-of-State Data Centers

What's Happening?

Maryland Congressional Delegation members, including Congressman Steny H. Hoyer and U.S. Senators Chris Van Hollen and Angela Alsobrooks, have called on the Federal Energy Regulatory Commission (FERC) to take action to prevent Marylanders from bearing the brunt of rising electricity costs. These costs are attributed to the increasing energy demand from data centers located outside the state. The lawmakers have urged FERC to require PJM Interconnection to implement protections ensuring fair energy costs for Maryland residents. PJM, responsible for coordinating electricity transmission in the region, has assigned approximately $2 billion in costs to Maryland ratepayers for infrastructure primarily serving out-of-state data centers. The delegation supports a complaint filed by the Maryland Office of People’s Counsel challenging PJM’s transmission cost allocation rules, which they argue unjustly assign billions of dollars in costs to Marylanders.

Why It's Important?

The issue is significant as it highlights the financial burden placed on Maryland residents due to infrastructure costs driven by out-of-state data centers. The lawmakers argue that Marylanders should not subsidize the energy infrastructure needs of wealthy companies, which could lead to unaffordable electricity bills. Without intervention, Maryland ratepayers could face an estimated $1.6 billion in additional charges over the next decade, with a substantial portion falling on residential customers. This situation underscores the need for regulatory action to ensure fair cost allocation and protect consumers from unjust financial burdens.

What's Next?

The Maryland Congressional Delegation is urging FERC to act swiftly to provide relief from these costs for Maryland ratepayers. They seek to prevent further harm before these costs appear on customer bills. The delegation is advocating for changes to PJM’s cost allocation rules to better reflect the actual beneficiaries of infrastructure projects and to protect Maryland residents from bearing unnecessary financial burdens.