INSIGHTSSERIES Power & Utilities | Smart Grid
May 5, 2025
Influx of Data Centers Prompt Regulatory Actions to Tackle Grid Reliability and Rate Impacts
Utility regulators aim to balance economic growth with grid reliability, ensuring fairness for existing ratepayers and large energy users.

Utility regulators across the U.S. are reviewing rate structures, interconnection processes, and grid planning to manage the growing electricity demand from large load customers, particularly data centers. While these facilities canRead the full report

Key Takeaways
- The Arizona Corporation Commission has launched a proceeding to review existing rate classifications and consider establishing more transparent rates for data center customers.
- In Pennsylvania, the utility commission is examining the rate impacts and tariff structures associated with the interconnection of high-load customers.
- Michigan regulators have established a contested proceeding to consider Consumers Energy’s rate category for high energy users given the significant cost implications associated with serving them.