The background: In recent weeks, we’ve noticed utility after utility announcing billions in projected ratepayer savings (thanks to large-load rate structures and agreements). But how exactly are orgs pulling in that much dough from data centers? Now, recent modeling from RMI paints a clearer picture of the massive sums these facilities are likely handing over.

A closer look: RMI modeled utilities’ annual revenue from large-load tariffs (at the request of the Colorado Utility Consumer Advocate within Xcel Energy’s large-load tariff proceeding).

The analysis estimated the amounts that Xcel Energy’s peer utilities, including Dominion, Florida Power & Light, and Portland General Electric, would collect from demand and energy charges, along with other tariff-specific riders, from a hypothetical 300-MW data center.

The top earner? PGE (around $300M/year), followed by Dominion ($241M) and Kentucky Power ($226M). 

The takeaway: These days, a 300-MW data center is starting to feel small…and payments from planned gigawatt-scale facilities will likely make these figures look like chump change.

The context: The Newsom administration claimed that the current wildfire liability setup enables attorneys, hedge funds, and other actors to prevent wildfire survivors from receiving what they’re owed. But a draft proposal to lower utility liability prompted pushback by state politicians, survivor advocates, and insurance industry groups. 

The compromise: Newsom and CA officials have agreed to a bundle of wildfire policies, including: 1) barring PE groups from investing in wildfire claims 2) prohibiting CEO bonuses in years of company-caused fires and 3) creating a “fast-pay” program for survivors. 

What’s next: CA lawmakers will vote on the package next week.

The complaint: Ohio utilities’ investment in local transmission projects is running “unchecked,” the Office of the Ohio Consumers’ Counsel said. Why? The state government doesn’t “review the cost-effectiveness of any transmission facilities,” the OCC noted in a Sept. 2023 complaint with FERC.

The response: Utilities including AEP, FirstEnergy, and Duke, along with PJM and the Edison Electric Institute, asked FERC to reject the complaint in Nov. 2023. They pointed to existing avenues for project reviews, including a PJM requirement for stakeholder meetings.

More spending: Since the office lodged the complaint, utilities have planned more than $4.3B in local transmission and supplemental projects. 

What happened: Officials have allowed Oncor to kick off construction on a roughly 400-mile East-West project. This marks the first approval in the state’s controversial $33B transmission plan to bring more electrons West (where the oil & gas industry is driving booming demand).

Meanwhile, state AG Ken Paxton is calling for a pause on TX‘s Tx expansion, claiming that “there must be clear guardrails from the Legislature for this scale of buildout.”

The details: The bill directs the state’s IOUs to incorporate DERs into peak demand capacity planning (including home batteries, solar + storage, and bidirectional EV chargers).

The savings: This would curb the need for new transmission and peaker plants, bill supporters said.

A caveat: It’s not clear whether Gov. Newsom will sign the bill; last year, he vetoed a slate of bills to expand VPPs.

The deal: As we reported, the companies are collaborating on a $30B, 3.2-GW data center near the GA coast. Georgia Power has emphasized that OpenAI will foot the bill for infrastructure and electric-service costs, per state PSC rules. Overall, the utility estimates nearly $3B in ratepayer savings from large-load customers between 2029-2031. 

The criticism: Georgia Public Service Commissioner Peter Hubbard (D)—who unseated a long-time Republican incumbent—has voiced concerns with the contract. For one, Open AI could duck out before it expires, potentially leaving infrastructure costs to ratepayers. Meanwhile, community members have claimed they were left out of the decision-making process.