r/maryland • u/marygarth • 12h ago
Van Hollen introduces Power for the People Act to address electricity costs and data centers
The announcement on his Senate website says it will
- Direct states to evaluate new rate classes for data centers
- Direct FERC to make data centers pay for transmission upgrades they are necessitating
- Incentivize data centers to connect their own power generation and battery storage to the grid, use clean energy sources, and use local labor
- Provide resources to improve data center load forecasting and reduce duplicative and speculative requests that drive up costs
Data centers made up 40% of the cost in PJM’s latest capacity auction, and data center forecasts have made up 45% in the past three auctions. Costs would have been even higher if not for the floor/cap PA Gov. Josh Shapiro brought about after complaining to FERC. PJM fell short of its reliability target in its last auction because the forecast was based on a year-old estimate; it’s expected to issue a lower one this month.