In fall 2024, Energy Futures Group had the pleasure of working with Earthjustice to review safeguards related to large loads. With the prediction that data centers alone may reach up to 9% of the United State’s total electricity consumption by 2030, it is critical to understand how existing ratepayers can be protected as these loads interconnect. The increase in power demand for data centers and other large consumption activities can negatively impact existing customers on the electric system and limit or eliminate progress on environmental goals. For data centers, the full operating capacity does not typically occur for the first few years, which impacts the timing of cost recovery and cash flow from servicing the load for the utility. The report summarizes the review of current high-density tariffs and special contracts, explores common tariff provisions related to large loads, identifies ongoing large load proceedings, such as those in Ohio and West Virginia, and discusses additional safeguards to allow for fair, reasonable, and non-discriminatory rates. With the evolving market surrounding the electric service of data centers and large loads, it should be noted that this report was drafted based upon the information available throughout the latter half of 2024.
EFG teams with Earthjustice on Safeguards and Protections for Existing Ratepayers Related to Large Load Tariffs
