Maryland advocate challenges PJM data center power plan

Maryland’s consumer watchdog is taking on the region’s power grid operator over plans to buy enough electricity to supply a wave of new data centers that may never get built. The Office of People’s Counsel filed a challenge with federal regulators this month, arguing that PJM Interconnection’s proposal would force Maryland households to cover hundreds of millions in unnecessary costs. The filing comes as PJM prepares to expand its power purchases to meet projected demand from a surge in data centers across the Mid-Atlantic, a growth forecast that critics say is overstated.

The dispute centers on PJM’s long-term forecasts, which assume massive increases in electricity demand driven by data centers in states like Virginia and Maryland. Industry analysts warn that many of these projects are speculative, with some developers securing power agreements before lining up tenants. PJM defends its projections as necessary to ensure grid reliability, but consumer advocates argue the costs—potentially passed directly to customers—are being locked in before the need is proven. The timing is critical: PJM’s latest capacity auction, which determines future power costs, is scheduled for December, making this a high-stakes battle over who pays for the region’s energy future.

Maryland’s filing is the latest in a broader pushback against PJM’s planning methods. Last year, the grid operator’s forecast for Virginia data centers triggered similar concerns, with one study estimating that overbuilding power infrastructure could cost ratepayers $4.5 billion in unnecessary expenses. PJM has faced criticism for relying on projections that don’t account for energy efficiency gains or shifts in data center locations. Consumer advocates also point to a 2023 report from the Maryland Energy Administration, which found that aggressive data center growth could strain the state’s grid by 2027, but only if all planned projects materialize—a scenario many now consider unlikely.

If federal regulators side with Maryland, PJM could be forced to revise its power purchase plans, delaying or reducing costs for customers. But grid operators warn that underestimating demand could lead to blackouts during peak usage. The outcome will shape how quickly Maryland and neighboring states can adapt to a changing energy landscape, with potential ripple effects for clean energy investments and ratepayer protections. The fight over who foots the bill for tomorrow’s power needs has only just begun.