PJM Transmission Cost Impacts on Electricity Customers in Maryland: An Overview of PJM Transmission Planning and Costs

Synapse, on behalf of the Maryland Office of the People's Counsel, conducted an analysis of rising electric transmission costs affecting customers in Maryland and the broader PJM Interconnection footprint. The study focused on assessing the costs of historical and projected transmission spending and understanding how regional and local transmission investments impact retail rates. We identified a sharp acceleration in the pace and scale of transmission costs, driven mostly by rapid load growth—particularly from large data centers, especially those located outside Maryland—and planning and cost allocation practices that spread costs broadly across ratepayers. Marylanders are bearing cost responsibility for $7.1 billion in capital costs from transmission projects built and planned over 20 years, between 2010 to 2030. Looking ahead, we estimate that PJM could allocate Maryland with an additional $5.4 billion in new capital costs for transmission projects built between 2031 to 2035.

Synapse assessed how these trends are increasing the transmission component of customer bills over time, highlighting issues associated with limited regulatory oversight, misalignment between those driving system expansion and those paying for it, and the risk of overinvestment under uncertain load forecasts. The analysis supports policy recommendations to improve transparency, strengthen oversight, and better align transmission planning and cost allocation with cost-causation principles.

You can find the report here.