PSC grants BGE mandatory CPCN waiver to modify transmission lines for new data center; commissioners warn of capacity-cost risks

The Public Service Commission on Oct. 8 granted Baltimore Gas and Electric Co. (BGE) a mandatory waiver of the certificate-of-public-convenience-and-necessity requirement to replace transmission structures and modify overhead lines in an existing BGE right-of-way in Anne Arundel County to serve a new data center.

Roger Austin of PSC staff told the commission that BGE filed a written request Aug. 6 seeking a mandatory waiver under Public Utilities Article §7‑207(b)(4)(i) to permit tower replacements and related work that would allow construction of a substation in a BGE transmission corridor. Staff recounted that BGE held two community meetings with no recorded opposition and that the portion of the project covered by the waiver (replacement towers and associated structures) is roughly $651,000. Staff estimated the first-substation project cost at about $19.8 million and concluded that the statutory conditions for a mandatory waiver were satisfied.

Catherine Moriarty, representing BGE, said the $19.8 million figure includes the overhead transmission-line work tied to the waiver request and the build-out of the first substation that will connect to those lines; BGE told the commission the first substation will be paid in full by the data center customer. "The cost for the, as staff calls it, the 2029 future substation are not included," Moriarty said, describing the later build-out as a separate project.

Commissioners pressed staff and BGE on technical and policy implications. Staff said the new towers will be taller (about 125 feet) but will not increase voltage or the conductor characteristics. Commissioners asked whether any study had been done of how adding a data center load would affect PJM‑zone capacity prices; staff said no capacity‑price analysis had been performed for this filing. One commissioner warned that "the impact of this data center could be significant on BG customers in terms of higher capacity costs," noting concern that future capacity prices in the constrained BGE zone could rise and be borne by ratepayers.

Eric Gay, senior manager of transmission regional planning for Exelon (covering BGE jurisdictions), told the commission the company has studied reliability for both the initial ~100 MW build and the full anticipated build-out and concluded that, from a reliability standpoint, planned work will address reliability issues. Drew McAuliffe of PSC staff reminded commissioners that pending large-load tariffs are under development and explained that, once in effect, those tariffs would require large-load customers that increase load by more than 25 MW to come under specific tariff requirements, including collateral provisions.

The chair moved to grant BGE's mandatory waiver under Public Utilities Article §7‑207(b)(4)(i). Commissioners McLean and Linton voted aye; Commissioner Suchman voted reluctantly but aye, saying the commission's hands are constrained by the mandatory-waiver statute even when commissioners have concerns about broader cost impacts. The waiver passed.