Local customers subsidize out‑of‑state data centers

Updated: 2026.05.09 2H ago 1 sources
Grid upgrades to serve concentrated, high‑density data centers can be paid for through regional rate allocations, meaning residents in one state may shoulder large utility bill increases to build transmission that mainly benefits facilities in neighboring states. Maryland's Office of People's Counsel alleges PJM's $22 billion plan will raise Maryland customer bills by about $1.6 billion over ten years and has filed a complaint with FERC. — If true and repeated, this cost‑shifting will reshape local permitting fights, state regulatory strategy, and utility rate design for large industrial electrification projects.

Sources

Will Maryland's Utility Bills Increase $1.6B to Support Other States' Datacenters?
EditorDavid 2026.05.09 100% relevant
Maryland Office of People's Counsel complaint to the Federal Energy Regulatory Commission over PJM's $22B transmission plan and the claim of $1.6B in Maryland ratepayer charges (breakdowns: $823M residential, $146M commercial, $629M industrial).
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