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Maryland Challenges $2 B Grid Upgrade for Data Centers

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Maryland Office of People’s Counsel filed a complaint with FERC over PJM Interconnection's $2 billion charge to upgrade its grid for data centers. The bill would add $1.6 billion to consumers over the next decade, breaking the ratepayer protection pledge. Lapp argues Maryland customers neither caused nor benefit from these projects.

PJM serves 13 states plus D.C., covering 65 million people. Several of those states host large data center clusters, driving demand for transmission. Maryland argues costs should be billed to the regions where upgrades occur or to the tech firms, following Trump’s “ratepayer protection pledge.” Uncertainty over load growth makes the allocation plan risky today.

The complaint highlights a broader dispute over who pays for infrastructure that supports AI workloads. PJM’s cost‑allocation rules spread upgrade costs across its entire membership, even if local demand remains flat. Maryland’s case could force a recalibration of billing practices, ensuring that consumers don’t shoulder expenses for projects that benefit a handful of data centers.

If FERC sides with Maryland, the grid‑upgrade model for the region could shift to a per‑project billing structure. That would align costs with actual load generation, potentially easing the financial burden on average households. Until then, Maryland consumers face a projected $823 million extra charge for residential service alone, underscoring the urgency of regulatory intervention.