Data points.
Data Centers could in many cases be a downward pressure on rates, as they bring big new revenue on line to help pay for Transmission and infrastructure.
Examples here from Indiana and Arizona.
Indiana Michigan Power announced Tuesday it will file for regulatory approval to lower base electric rates, which the utility said represent the largest portion of customer bills.
The move is part of I&M’s new Customer Benefits Plan, which must be approved by the Indiana Utility Regulatory Commission before taking effect. The utility attributed the proposed rate decrease to increased revenue from large customers, including data centers such as Google’s Fort Wayne site.
The plan also includes a “Benefits Bank” designed to help stabilize customer rates by providing a buffer against future cost increases. I&M said it also wants to make strategic improvements in infrastructure and technology to reduce outages and improve reliability.
The announcement comes as advocates have raised concerns over electric rate increases tied to data center growth. I&M has also filed separately to accelerate new power plant construction, as demand is projected to nearly double between 2025 and 2030.
“Our priority is to keep rates as low as possible while delivering reliable power and growing our communities. We know customers are concerned about affordability and the impact of data-center growth on rates. The fact that we can reduce rates while continuing to invest in the infrastructure and technology that supports reliability, is evidence that growth in I&M’s service territory is benefiting all customers.”
– Steve Baker, I&M’s President and Chief Operating Officer
Google also previously agreed to reduce its data center’s electrical use during times of peak demand.
Below, Arizona Utility CEO tells an interviewer that new Data Centers will have to pay their own way and will not burden ratepayers.
Continue reading “Data Centers Could Lower Indiana Electric Rates”
