{"id":69638,"date":"2025-08-09T08:47:06","date_gmt":"2025-08-09T08:47:06","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/69638\/"},"modified":"2025-08-09T08:47:06","modified_gmt":"2025-08-09T08:47:06","slug":"rising-electric-bills-how-states-are-tackling-big-techs-energy-demands","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/69638\/","title":{"rendered":"Rising electric bills: How states are tackling Big Tech’s energy demands"},"content":{"rendered":"

HARRISBURG, Pa. (AP) \u2014 Amid rising electric bills, states are under pressure to insulate regular household and business ratepayers from the costs of feeding Big Tech\u2019s energy-hungry<\/a> data centers.<\/p>\n

It\u2019s not clear that any state has a solution and the actual effect of data centers on electricity bills is difficult to pin down. Some critics question whether states have the spine to take a hard line against tech behemoths like Microsoft, Google, Amazon and Meta.<\/p>\n

But more than a dozen states have begun taking steps as data centers drive a rapid build-out of power plants and transmission lines.<\/p>\n

That has meant pressuring the nation\u2019s biggest power grid operator to clamp down on price increases, studying the effect of data centers on electricity bills or pushing data center owners to pay a larger share of local transmission costs.<\/p>\n

Rising power bills are \u201csomething legislators have been hearing a lot about. It\u2019s something we\u2019ve been hearing a lot about. More people are speaking out at the public utility commission in the past year than I\u2019ve ever seen before,\u201d said Charlotte Shuff of the Oregon Citizens\u2019 Utility Board, a consumer advocacy group. \u201cThere\u2019s a massive outcry.\u201d<\/p>\n

Not the typical electric customer<\/p>\n

Some data centers could require more electricity than cities the size of Pittsburgh, Cleveland or New Orleans, and make huge factories look tiny by comparison. That\u2019s pushing policymakers to rethink a system that, historically, has spread transmission costs among classes of consumers that are proportional to electricity use.<\/p>\n

\u201cA lot of this infrastructure, billions of dollars of it, is being built just for a few customers and a few facilities and these happen to be the wealthiest companies in the world,\u201d said Ari Peskoe, who directs the Electricity Law Initiative at Harvard University. \u201cI think some of the fundamental assumptions behind all this just kind of breaks down.\u201d<\/p>\n

A fix, Peskoe said, is a \u201ccan of worms\u201d that pits ratepayer classes against one another.<\/p>\n

Some officials downplay the role of data centers in pushing up electric bills.<\/p>\n

Tricia Pridemore, who sits on Georgia\u2019s Public Service Commission and is president of the National Association of Regulatory Utility Commissioners, pointed to an already tightened electricity supply and increasing costs for power lines, utility poles, transformers and generators as utilities replace aging equipment or harden it<\/a> against extreme weather.<\/p>\n

The data centers needed to accommodate the artificial intelligence<\/a> boom are still in the regulatory planning stages, Pridemore said, and the Data Center Coalition, which represents Big Tech firms and data center developers, has said its members are committed to paying their fair share. <\/p>\n

But growing evidence suggests that the electricity bills of some Americans are rising to subsidize the massive energy needs of Big Tech as the U.S. competes in a race against China<\/a> for artificial intelligence superiority<\/a>.<\/p>\n

Data and analytics firm Wood Mackenzie published a report in recent weeks that suggested 20 proposed or effective specialized rates for data centers in 16 states it studied aren\u2019t nearly enough to cover the cost of a new natural gas power plant.<\/p>\n

In other words, unless utilities negotiate higher specialized rates, other ratepayer classes \u2014 residential, commercial and industrial \u2014 are likely paying for data center power needs.<\/p>\n

Meanwhile, Monitoring Analytics, the independent market watchdog for the mid-Atlantic grid, produced research in June showing that 70% \u2014 or $9.3 billion \u2014 of last year\u2019s increased electricity cost was the result of data center demand.<\/p>\n

States are responding<\/p>\n

Last year, five governors led by Pennsylvania\u2019s Josh Shapiro<\/a> began pushing back against power prices set by the mid-Atlantic grid operator, PJM Interconnection, after that amount spiked nearly sevenfold. They warned of customers \u201cpaying billions more than is necessary.\u201d<\/p>\n

PJM has yet to propose ways to guarantee that data centers pay their freight, but Monitoring Analytics is floating the idea that data centers should be required to procure their own power.<\/p>\n

In a filing last month, it said that would avoid a \u201cmassive wealth transfer\u201d from average people to tech companies.<\/p>\n

At least a dozen states are eyeing ways to make data centers pay higher local transmission costs.<\/p>\n

In Oregon, a data center hot spot<\/a>, lawmakers passed legislation in June ordering state utility regulators to develop new \u2014 presumably higher \u2014 power rates for data centers.<\/p>\n

The Oregon Citizens\u2019 Utility Board says there is clear evidence that costs to serve data centers are being spread across all customers \u2014 at a time when some electric bills there are up 50% over the past four years and utilities are disconnecting more people than ever.<\/p>\n

New Jersey\u2019s governor signed legislation last month commissioning state utility regulators to study whether ratepayers are being hit with \u201cunreasonable rate increases\u201d to connect data centers and to develop a specialized rate to charge data centers.<\/p>\n

In some other states, like Texas and Utah, governors and lawmakers are trying to avoid a supply-and-demand crisis that leaves ratepayers on the hook \u2014 or in the dark.<\/p>\n

Doubts about states protecting ratepayers<\/p>\n

In Indiana, state utility regulators approved a settlement between Indiana Michigan Power Co., Amazon<\/a>, Google<\/a>, Microsoft and consumer advocates that set parameters for data center payments for service.<\/p>\n

Kerwin Olsen, of the Citizens Action Council of Indiana, a consumer advocacy group, signed the settlement and called it a \u201cpretty good deal\u201d that contained more consumer protections than what state lawmakers passed.<\/p>\n

But, he said, state law doesn\u2019t force large power users like data centers to publicly reveal their electric usage, so pinning down whether they\u2019re paying their fair share of transmission costs \u201cwill be a challenge.\u201d<\/p>\n

In a March report, the Environmental and Energy Law Program at Harvard University questioned the motivation of utilities and regulators to shield ratepayers from footing the cost of electricity for data centers.<\/p>\n

Both utilities and states have incentives<\/a> to attract big customers like data centers, it said.<\/p>\n

To do it, utilities \u2014 which must get their rates approved by regulators \u2014 can offer \u201cspecial deals to favored customers\u201d like a data center and effectively shift the costs of those discounts to regular ratepayers, the authors wrote. Many state laws can shield disclosure of those rates, they said.<\/p>\n

In Pennsylvania, an emerging data center hot spot<\/a>, the state utility commission is drafting a model rate structure for utilities to consider adopting. An overarching goal is to get data center developers to put their money where their mouth is.<\/p>\n

\u201cWe\u2019re talking about real transmission upgrades, potentially hundreds of millions of dollars,\u201d commission chairman Stephen DeFrank said. \u201cAnd that\u2019s what you don\u2019t want the ratepayer to get stuck paying for.\u201d<\/p>\n

___<\/p>\n

Follow Marc Levy on X at https:\/\/x.com\/timelywriter<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"HARRISBURG, Pa. (AP) \u2014 Amid rising electric bills, states are under pressure to insulate regular household and business…\n","protected":false},"author":2,"featured_media":69639,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[4613,12300,28,50538,12291,6498,793,8262,851,2652,8629,50541,1683,1536,1997,3831,2232,5631,3234,50539,1548,74,1022,50540,1059,795,3325,3324],"class_list":{"0":"post-69638","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-alphabet","9":"tag-amazon-com","10":"tag-business","11":"tag-charlotte-shuff","12":"tag-data-management-and-storage","13":"tag-finance-business","14":"tag-general-news","15":"tag-in-state-wire","16":"tag-inc","17":"tag-indiana","18":"tag-josh-shapiro","19":"tag-kerwin-olsen","20":"tag-meta-platforms","21":"tag-microsoft-corp","22":"tag-new-jersey","23":"tag-or-state-wire","24":"tag-oregon","25":"tag-pa-state-wire","26":"tag-pennsylvania","27":"tag-stephen-defrank","28":"tag-taxes","29":"tag-technology","30":"tag-texas","31":"tag-tricia-pridemore","32":"tag-tx-state-wire","33":"tag-u-s-news","34":"tag-ut-state-wire","35":"tag-utah"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/69638","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=69638"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/69638\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/69639"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=69638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=69638"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=69638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}