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affordability
Maryland Residents to Pay $1.6 Billion More in Power Bills Due to Out-of-State Data Centers: Complaint
"Maryland customers have neither caused the need for these billions in new transmission projects, nor will they meaningfully benefit from them," said Maryland People’s Counsel David S. Lapp.
May 08, 2026
A top state utilities regulator is calling foul on an effort to shift the power cost of out-of-state artificial intelligence data centers onto Maryland residents.
Maryland's Office of People's Counsel on Thursday filed a complaint with the Federal Energy Regulatory Commission (FERC) against electric grid operator PJM Interconnection objecting to plans that it said would force residents in the state to pay $1.6 billion in data center-driven transmission costs over the next decade.
The complaint states that the transmission cost allocation methodology PJM is using "broadly socializes" the cost of increased power demands that is being driven by AI data centers.
"That result is unjust and unreasonable and violates the cost causation principles that have long governed transmission cost allocation and that this commission has repeatedly affirmed," the complaint says. "PJM’s tariff imposes these costs on Maryland electric customers even though Maryland customers do not meaningfully cause nor benefit from those investments."
The Office of People's Counsel pointed to the massive number of data centers built in neighboring Virginia as a primary culprit for added strain on the electric grid.
"Amidst national data center growth, Virginia stands as the epicenter," the complaint says. "Virginia is the largest data center market in the world... As of December 2024, data centers represented 3.6 GW of demand... reflecting, since 2013, a 660% increase in megawatt-hour consumption."
This explosive growth in energy demand is only expected to intensify over the next several years, the complaint continues, noting that "PJM projects 32 GW of peak load growth across its territory by 2030, of which approximately 30 GW is attributable to data centers."
As a remedy, the complaint asks FERC to "require PJM to take immediate action to assign data center-driven transmission costs to the PJM zones where the data center customers are located" instead of shifting the cost to Marylanders.
Commenting on his office's complaint, Maryland People’s Counsel David S. Lapp said that the attempt to saddle Maryland consumers with a $1.6 billion bill for facilities outside the state's borders shows "PJM’s cost allocation rules are broken."
"Maryland customers have neither caused the need for these billions in new transmission projects," Lapp added, "nor will they meaningfully benefit from them."
Data centers have become political lightning rods in recent months, as residents from across the country object to their mass resource consumption, which is leading to a major spike in utilities bills, as well as the noise pollution they generate.
As CNBC reported earlier this year, PJM currently projects that it will be a 6 GW short of its reliability requirements in 2027 thanks to the added demand from data centers.
Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-NY) earlier this year introduced a bill that would impose a nationwide moratorium on AI data center construction “until strong national safeguards are in place to protect workers, consumers, and communities, defend privacy and civil rights, and ensure these technologies do not harm our environment.”
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Trump Agriculture Chief Claims ‘Golden Age’ Is Coming. US Farmers Say They’re ‘Barely, Barely Getting By’
"These rising costs are hitting us at the wrong time here," said one farmer of the high prices of diesel and fertilizer.
May 07, 2026
US Agriculture Secretary Brooke Rollins on Thursday claimed American farmers are heading toward a "golden age," even as President Donald Trump's policies are increasingly driving them into financial distress.
During an appearance on Fox Business, Rollins discussed Trump's upcoming meeting with Chinese President Xi Jinping to talk trade between the two countries.
"For our farmers and our ranchers, for farm security, for food security, making sure our farmers can prosper as they move into what will hopefully be a golden age under this president, these trade deals are very important," Rollins said. "But the president also understands that the over-reliance on a country like China has massive implications from a national security standpoint."
Brooke Rollins: "Farmers are moving into hopefully what will be a golden age under this president" pic.twitter.com/y2FRfZZVR3
— Aaron Rupar (@atrupar) May 7, 2026
American farmers took a big financial hit in 2025 after China cut off purchases of US soybeans in retaliation for Trump's "Liberation Day" tariffs.
The problems facing US farmers have gotten even worse since Trump illegally launched a war with Iran in late February, as the prices of fertilizer and diesel soared after Iran shut down the Strait of Hormuz.
According to a Monday report from Wisconsin Public Radio, there is little immediate relief coming for US farmers even if Trump ends his war with Iran and the Strait of Hormuz immediately reopens.
Shawn Arita, associate director of the Agricultural Risk Policy Center, told WPR that price projections show fertilizer prices will likely remain high throughout the rest of the year.
In fact, even if the strait were to reopen soon, the center projects that fertilizer prices will remain 13% higher than they were before the war started through all of next year and into 2028.
"We have seen that even in the most optimistic scenario," Arita explained, "we're going to see elevated prices on the nitrogen as well as phosphate side that continues on through the fall and moving into 2027."
Bill Knudson, agriculture economist at Michigan State University, told WPR that it will also take time to get shipping back to normal should the strait reopen soon because there are still an estimated 2,000 vessels stranded there that will take time to clear out.
"You’re not going to see a return to normal for several months, even if the Strait of Hormuz was opened relatively quickly," Knudson explained, "because you’ve got to get all those ships out of there."
The Guardian on Thursday published interviews with US farmers who explained how the combined hit of the president's trade wars and the Iran war have hurt them financially.
New York-based farmer Blake Gendebien told The Guardian that "these rising costs are hitting us at the wrong time here," as the price of offroad diesel has nearly doubled since last April.
"It’s a massive cost for farmers that are already barely, barely getting by," Gendebien explained.
North Carolina-based cotton farmer Julius Tillery told The Guardian that he's had to overhaul his planting process this year to minimize his use of diesel fuel.
“I’m very careful on my planting dates," said Tillery, who also revealed he's been eating more ramen noodles to save money. “I can’t afford to plant crops in bad climates, so the production window becomes smaller.”
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'You Have Unleashed Chaos': Dems Push Trump to Come Clean on Scale of Economic Destruction From Iran War
"Americans deserve to know whether your administration considered the many ways your war would increase the day-to-day cost of living," the lawmakers wrote in a letter to the president.
May 06, 2026
A group of US House Democrats is demanding that President Donald Trump be transparent with the American public about the extent to which his administration planned for the dramatic price hikes caused by the war in Iran over the past two months.
"You have unleashed chaos, undermined our national security, and escalated the conflict by threatening war crimes, including wiping out an entire civilization and destroying civilian infrastructure," says the letter sent to the president on Wednesday by the five Democrats, who all serve leading opposition roles in House committees.
The letter was signed by Rep. Robert Garcia (D-Calif.), the ranking member of the House Committee on Oversight and Government Reform; Rep. Frank Pallone Jr. (D-NJ), the ranking member of the Committee on Energy and Commerce; Rep. Angie Craig (D-Minn.), the ranking member of the Agriculture Committee; Rep. Jared Huffman (D-Calif.), the ranking member on the Natural Resources Committee; and Rep. Don Beyer (D-Va.), the senior House Democrat on the Joint Economic Committee.
Gas is over $6 bucks a gallon in parts of California. Instead of lowering prices, President Trump is spending a billion dollars a day on a war with no mission and no end in sight. What happened to America First?
— Robert Garcia (@RobertGarcia) May 5, 2026
The Democrats accused Trump of having launched the war "without coherent or realistic strategic objectives," and without a plan in the event that Iran restricted travel through the Strait of Hormuz, which has led to economic havoc.
"The impacts of your war will be felt for years, and the consequences of your reckless decision to drag America into war are increasingly falling on the American public," the lawmakers said.
They cited reports that consumer prices are now growing faster than at any point in nearly two years, with no sign of slowing down due to a 50% spike in crude oil prices, which has also driven gas prices above $4.50 per gallon on average across the US, up more than $1 from the war's beginning.
These oil shocks have rippled through the economy, raising the cost of airline tickets, home utilities, shipping, and numerous consumer goods. The blockage of the strait has also hampered fertilizer shipments, leading to spikes in food prices.
The lawmakers also noted the cost of the actual war to US taxpayers, which was reportedly about $2 billion per day during the first week of attacks.
While the Pentagon has claimed the war has only cost about $25 billion since it began in late February, Stephen Semler, a senior fellow at the Center for International Policy, estimates that when armament use, troop deployments, and other factors are considered, the true cost over 60 days has been more than $71 billion, almost three times higher.
Trump said during a press conference on Tuesday that when he decided to launch the war, he expected price increases to be even worse than they turned out to be.
"I also thought oil would go up to $200, $250, maybe $300, and I knew it would be short-term, but I thought it would go. I looked today, it's, like, at $102," he said, referring to the price of a barrel of oil. "That's a very small price to pay for getting rid of a nuclear weapon from people who are really mentally deranged."
The American public does not seem to agree. Trump's approval rating has plummeted to unseen lows since the war began, with just 35% now approving of his handling of the economy, according to an NPR/PBS News/Marist poll out Wednesday.
The same poll found that more than 8 in 10 said gas price hikes were straining their household budgets, and a majority (63%) blamed Trump for the increases. Roughly the same percentage said the overall economy was not working well for them personally, while 61% said they believed the war in Iran had done more harm than good.
The Democratic lawmakers inquired about the extent to which the Trump administration had prepared for Iran to cut off the Strait of Hormuz, which they said had been "long predicted" by experts.
They pointed to statements by administration officials, including US Secretary of Energy Chris Wright, who said just over a week before the war was launched that, thanks to Trump's "energy dominance agenda," prices would likely only "blip," as they had during June's 12-day war.
They also cited reports that Trump "did not consult" with Wright, Treasury Secretary Scott Bessent, or Director of National Intelligence Tulsi Gabbard to assess the likely impacts of an attack on oil markets.
The lawmakers noted predictions from the Organization for Economic Cooperation and Development (OECD) in March that the war will push inflation to 4.2% this year, up from 2.6% the previous year. Analysts have predicted that an increase in inflation to just 3% would cost the average household with $5,000 in monthly expenses an extra $1,800 per year.
Asking Trump to provide documents detailing the White House's communications with executive agencies, the lawmakers said, "Americans deserve to know whether your administration considered the many ways your war would increase the day-to-day cost of living, and what steps you are now taking to protect Americans from the fallout of your foolhardy rush to war."
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