Baltimore, MD – Delmarva Power and Light Co. has proposed new electricity rates targeting large energy consumers in its service area, which spans parts of Maryland and Delaware, according to The Daily Record. The utility company submitted the filing to the Maryland Public Service Commission on December 23, 2025, aiming to implement specialized tariffs for “large load” customers such as data centers, manufacturing plants, and other high-demand facilities.
The proposal comes amid a surge in electricity usage driven by the expansion of energy-intensive industries, particularly the tech sector’s growth in artificial intelligence and cloud computing infrastructure. Delmarva Power officials stated that these large users, which can consume volumes equivalent to thousands of households, require a distinct pricing structure to ensure equitable cost distribution across the grid. Without such measures, the company argued, residential and small commercial customers could face higher bills to subsidize the infrastructure upgrades needed for these mega-consumers.
Under the suggested rates, large load customers would pay a demand charge based on their peak usage, in addition to standard energy consumption fees. This approach is designed to incentivize efficient energy management during high-demand periods, potentially reducing strain on the regional power grid. For instance, data centers, which operate 24/7 and require reliable, high-volume power, would be classified under a new “Large Load Service” category if approved.
Maryland regulators are reviewing the proposal as part of broader efforts to balance economic development with affordable energy access. The state has seen increased interest from tech giants seeking to establish operations in the Delmarva region due to its strategic location and available land. However, critics, including some environmental groups, expressed concerns that the tariffs might accelerate fossil fuel dependency if not paired with renewable incentives.
Delmarva Power emphasized that the changes would not affect typical households immediately, with any rate adjustments for smaller users limited to minimal pass-through costs for grid maintenance. The company projected that large load tariffs could generate additional revenue to fund $500 million in infrastructure investments over the next five years, including substation expansions and smart grid technologies.
Public hearings on the proposal are scheduled to begin in early 2026, allowing stakeholders to provide input. If approved, the new rates could take effect by mid-year, positioning Maryland as a more attractive hub for sustainable industrial growth. This move aligns with statewide goals to support economic expansion while transitioning toward cleaner energy sources.
Delmarva Power, a subsidiary of Exelon Corp., serves approximately 300,000 customers in Maryland’s Lower Shore counties, including Somerset, Wicomico, Worcester, and parts of Dorchester. The utility’s service territory encompasses the Delmarva Peninsula, a region vital to agriculture, tourism, and emerging tech sectors. Officials noted that similar proposals have been filed in Delaware, indicating a coordinated regional strategy.
In related developments, Maryland’s energy landscape continues to evolve with federal incentives for electrification. One statistical highlight from the filing reveals that large load customers currently account for about 15% of Delmarva’s total demand but are projected to rise to 25% by 2030 due to data center proliferation. An example cited in the proposal involves a hypothetical 50-megawatt data center, which under the new tariff would incur an additional $2 million annually in demand charges, encouraging off-peak operations.
As the commission deliberates, local business leaders have voiced support, viewing the tariffs as a way to prevent rate shocks for everyday consumers. Environmental advocates, however, urge inclusion of green energy mandates to mitigate carbon impacts. The outcome of this regulatory process will likely influence future investments in Maryland’s energy infrastructure.