It’s finally Friday. Earlier this week, we asked if you think it’s time to curb investor-owned utilities’ ROEs. The winning answer? Half of Daily readers said no, it’s time to keep growing. Still, 31% said they’re not sure, and 19% said the system isn’t working. For now, one thing is clear: Utility profits are certainly on the public’s radar—more on that below. 👀
One reader said this: “The utilities have 40-year lifecycle systems that are not readily available for interconnecting renewable energy…further complicating the equation is accelerated load growth from electrification, new manufacturing, and data center requirements.”
Meanwhile, another noted: “The days of a guaranteed rate of return are outdated and should be changed. The intent [of deregulation] was to allow independent power producers to provide energy on a least-cost basis.”
— Molly, Alex, and the Energy Central editorial team
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Most US consumers think utility profit-seeking is driving up their energy bills, a new survey suggests. (Pew)
The major factor behind rising electricity costs, according to 64% of respondents? “Utility companies wanting to make more money,” per a March Pew survey of over 3.5K US adults. Meanwhile, 43% identified data centers as the main culprit, and 40% cited grid updates and expansion.
The scoreboard: Three-quarters of respondents told Pew their home energy costs have gone up in recent years, including 42% who claimed they’ve gone up a lot (a sentiment most common among Northeasterners).
Why it matters: Utilities link higher bills to grid upgrades, weather, demand growth, and infrastructure costs. But more often than not, it appears that consumers’ eyes are fixed on the boardroom.
Utility pros: Do these results surprise you?
CAISO’s shiny new day-ahead market is off to a (blessedly) boring start. (Utility Dive)
EDAM launched last Friday with PacifiCorp as its lone participant. Now, CAISO says prices are falling within expected ranges while transfer volumes stay steady across the market footprint. Translation: the plumbing appears to be working.
Up next? Portland General Electric eyes an October join date.
Data centers are forcing utilities into a pricey balancing act.
AEP is flooring it: The company raised its five-year capital plan to $78B, just a few months after setting it at $72B. Why? It signed 7 GW of new load agreements in Q1. Nearly 90% of its expected 63 GW of contracted load growth by 2030 is tied to data centers.
Exelon is tapping the brakes…sort of: To ease bill pressure, Exelon will shave $350M off planned utility spending next year—and boost transmission investments by $1.5B. Its transmission rate base is set to grow 16% annually through 2029, in part to bring data centers online.
Load growth, renewables, and extreme weather are pushing grids to evolve. Join Schneider Electric on May 19 to learn how utilities are using AI to plan faster, reduce risk, and improve grid resilience today.
The data center backlash is now big enough to halt a growing list of projects.
Local pushback helped sink at least 25 US data center projects last year—4X the 2024 tally, according to Heatmap. Now, another 99+ projects are facing community opposition. Residents most often cite water use, power demand, higher bills, noise, and rural land impacts.
Case in point: A 40K-acre Utah data center project backed by Kevin O’Leary (yes, the guy from “Shark Tank”) drew hundreds of protesters this week, along with online backlash that Leary called “AI-generated.” The full buildout is expected to consume about 9 GW of power—over 2X the entire state’s current energy use.
Can electrification offer the antidote to fuel shocks and grid stress?
The industrial play: University of Oxford researchers say roughly 85% of industrial energy demand could run on electricity by 2050. That’s with the help of existing and emerging tech, including heat pumps, thermal batteries, and plasma-based equipment. This sales pitch has gotten sharper with the Iran war, as fossil fuels hit political chokepoints.
The household play: Rewiring America calculated that state-level policy changes could unlock an average $26K in lifetime per-household savings (by making rooftop solar, heat pumps, and other upgrades cheaper and easier to deploy). The core argument: Homes should be properly compensated as grid infrastructure.
PJM and California say they’re summer-ready—but neither is exactly relaxing.🍹
PJM expects summer demand to peak at around 156.4 GW. They’ve got 180.2 GW of generation capacity and 7.8 GW of contracted demand response on hand. PJM does note, however, that data center-driven load growth is outrunning new generation and tightening reserves.
CAISO, meanwhile, forecasts 46.5 GW of summer demand against 66.6 GW of available resources (plus up to 4.5 GW in contingency resources).
Yes, but: PJM may need demand response amid extreme heat or weak generator performance. And, sure, CA has avoided flex alerts for three straight summers…but a hot, parched West could strain imports, hydro availability, and wildfire-hit transmission.
What’s the average age of the country’s power transformers?
A) 16 years
B) 38 years
C) 52 years
Keep reading to find out. 🤔
Pressures like DER growth and two-way flows are pushing grids to their limits. Join the conversation to hear how Semtech uses edge intelligence, automation, and security to modernize faster—without costly system overhauls.
🪞 Energy politics don’t often reflect energy reality. You read Matt Chester’s blistering takedown of politically charged energy myths—and had a lot to say in the comments section. Now, we’re taking the debate to the Power Perspectives podium. Hear what happens when we cut through the superficial assumptions and zoom into actual economics, infrastructure, and customer realities. Listen on Spotify, Apple, and YouTube
Smarter meters are reshaping grid operations. Tune in on June 9 to find out how Sense turns real-time data into faster fixes, sharper decisions, and stronger customer programs across the grid.
Thanks for reading. See you soon! FYI: Transformers in the US are 38 years old, on average, which nears the end of their design life. 😬