Energy Business
Sun, Aug 30
Molly Glick
Molly Glick
Energy Central Team
·Posted in Energy Business

NEWS: Data centers are paying utilities hundreds of millions per year under large-load tariffs. đź’µ

  • 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.

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