### Key Highlights:
– A group of 80 Maryland lawmakers is supporting a complaint to the Federal Energy Regulatory Commission (FERC). They are concerned about how PJM Interconnection allocates costs for transmission lines that primarily benefit out-of-state data centers.
– Maryland ratepayers are expected to pay $1.6 billion over the next ten years for these transmission projects. This total comes from recent plans approved by PJM, which seem to focus more on serving data centers in Virginia rather than benefiting Maryland residents.
– The legislators argue that the current cost allocation is unfairly burdensome for Maryland, especially considering the state’s proximity to “Data Center Alley” in Virginia. They estimate that the growth of data centers in the region could lead to even higher costs for Maryland customers in the future.
### Additional Insights:
The complaint highlights a growing concern across the U.S. about how the rise of data centers can impact electric bills through increased generation and transmission costs. It points out that FERC should not approve cost allocation methods that unfairly charge ratepayers who don’t receive corresponding benefits.
PJM allocates half of certain transmission costs based on a load-ratio share, assuming all new transmission will benefit the entire grid. However, the ratepayer advocate contends that this does not adequately factor in the unique challenges posed by data centers.
The complaint also warns that distributing these costs across the PJM footprint could result in excessive building. By sharing these costs universally, the current system may shield states and utilities from the consequences of speculative load growth while shifting the financial burden onto neighboring states.
Further, the complaint mentions that existing large-load tariffs at the state level do not solve the issue and might worsen the situation caused by PJM’s allocation methods.
In light of recent FERC-approved agreements, rates for existing customers may be left vulnerable. The complaint argues that these agreements often lack transparency and do not adequately protect them from the increased transmission costs linked to data centers.
Overall, the ratepayer advocate calls for a revision in PJM’s cost allocation method so that data centers are responsible for the transmission costs they generate. Adjusting these costs to reflect where data centers are located would help align accountability and minimize undue burden on Maryland ratepayers.
FERC has extended the deadline for comments on this matter to July 27.