Maryland ratepayers are facing a projected $1.6 billion increase in electric bills over the next decade, averaging about $345 per household, due to transmission upgrades largely driven by data centers in Northern Virginia. The state’s Office of People’s Counsel (OPC) has filed a complaint with the Federal Energy Regulatory Commission (FERC), arguing that PJM Interconnection’s cost-allocation rules unfairly burden Maryland customers with expenses they did not cause and from which they will see little benefit.
While the OPC highlights the pressure from the AI-driven data center boom, Maryland’s deeper challenge lies in its own energy policies. The state imports about 40% of its electricity annually, leaving it vulnerable to PJM-wide costs. Early coal plant retirements and aggressive renewable mandates have reduced reliable baseload capacity, increasing dependence on imports. Nuclear and natural gas remain the primary in-state sources, but renewables—though growing—still account for a relatively small share.
Maryland’s climate policies, including the Renewable Portfolio Standard, the Climate Solutions Now Act, and participation in the Regional Greenhouse Gas Initiative (RGGI), have added compliance costs and driven up wholesale energy prices. Capacity market prices have surged as retirements outpace new firm generation, contributing to higher residential rates. Critics argue that these policies prioritize intermittent renewables over reliable power, leaving the grid more fragile and costs higher.
Data centers are accelerating demand, with projections of 30 GW of new PJM load by 2030, but Maryland’s structural supply issues make the transmission upgrades more costly and contentious. The situation mirrors challenges seen in Europe, where reliance on intermittent renewables and carbon pricing has led to higher costs and energy insecurity.
The broader lesson is that Maryland’s energy challenges stem not only from external demand growth but also from its own policy choices. A more balanced approach—maintaining nuclear, preserving or repowering gas and coal assets, and streamlining permitting for firm generation—could strengthen reliability and reduce costs. Without such adjustments, residents risk bearing the brunt of rising bills while policymakers deflect blame onto data centers.
