In response to consumer outrage about higher electricity prices, the Department of Energy (DOE), Federal Energy Regulatory Commission (FERC), and PJM Interconnection are focusing on accelerating the connection of new power generation to the grid and reforming market rules to prevent “unnecessary price hikes” for consumers. For today’s lead story, I spoke with Michael B. Jacobs, who analyzed planning documents for utilities across several Mid-Atlantic and Midwest states. In his research, he found utilities in seven states passed more than $4.3 billion in additional costs on to customers. These costs come from local transmission upgrades made to provide transmission-level service directly to data centers. 

While there seems to be bipartisan agreement, as well as public consensus, that data centers should pay their own grid expansion costs, the nuts and bolts of making it a reality aren’t so clear cut. That’s why the DOE, FERC, PJM and other stakeholders are looking at ways to reform outdated rules and procedures to protect consumers from subsidizing the costs of data centers and AI buildouts across the nation. Some controversy has erupted about states’ rights versus federal jurisdiction, so it’s an issue we will continue following as the November 28 deadline approaches for filing comments around the DOE’s proposed advanced notice of proposed rulemaking (ANOPR) on the interconnection of large loads to the interstate transmission system.