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County briefing: regional data-center growth drives higher capacity and wholesale costs, OPC says
Summary
Deputy People's Counsel Bill Fields told county advisers that recent and prospective hyperscale data centers are tightening capacity in the PJM region, driving up auction prices and contributing to higher residential bills; local transmission upgrades can add tens-to-hundreds of millions in costs and the Public Service Commission is implementing legislative direction to have large customers pay caused transmission costs.
Bill Fields, deputy people's counsel at the Office of People's Counsel, told a Baltimore County study group that recent increases in PJM capacity prices and proposed large data-center projects are raising wholesale electric costs that will filter into residential bills across the region. "We represent the interests of residential customers," Fields said, framing his office's review of how supply and delivery components appear on typical electric bills.
Fields explained that after Maryland's electric restructuring utilities buy generation and transmission in the PJM regional market rather than owning power plants directly, which leaves supply charges sensitive to regional supply and demand. He said capacity-auction prices have jumped and that his office's calculations show capacity increases translating to roughly $10–$20 a month for the average residential customer beginning June 1, 2025, with elevated levels likely to persist for at least three years.
The presentation included PJM load-forecast graphics for the BGE zone and examples of proposed large-load projects — including proposals cited to reach hundreds or thousands of megawatts — and Fields warned that a single hyperscale project can materially change forecasts. "Forecasting is highly uncertain," he said, noting that PJM forecasts rely on projects utilities report and many proposed projects are not yet reflected in official numbers.
Fields also described local transmission upgrades — new substations and lines — that can cost tens or hundreds of millions and said the recently passed utility relief act directs that large-load customers should bear the transmission costs they cause; the Public Service Commission is implementing that direction but has not yet issued final rules. "For those local transmission costs, the data center will be a significant customer," he said, adding that some project revenues can offset upgrade costs while other wholesale-market-driven price components remain harder to insulate.
County members pressed on how near‑term hyperscale projects could double or triple load projections; Fields said the industry is developing new processes to require stronger financial commitments from developers before utilities build major local upgrades or include projects in forecasts. He emphasized the regional nature of the price increases — driven mainly by demand in other PJM areas such as Virginia and neighboring states — rather than a Maryland‑specific spike.
The briefing concluded with an offer for follow-up discussion and reference links to the OPC's more detailed analyses and the office's complaint filings concerning regional transmission allocations.
Next steps: staff said slide decks and written testimony will be shared with the group and announced a public community input meeting Thursday at 5 p.m., available virtually and in person.
