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Dan Charles

๐Ÿ‘ค Speaker
92 total appearances

Appearances Over Time

Podcast Appearances

Short Wave
What Are AI Data Centers Doing To Your Electric Bill?

That's right.

Short Wave
What Are AI Data Centers Doing To Your Electric Bill?

Dominion Energy sells electricity, maintains the grid, builds power lines when they're needed, and regulators let them charge consumers just enough to cover those costs and collect some profit on top.

Short Wave
What Are AI Data Centers Doing To Your Electric Bill?

So when Dominion spends more money building new power lines for data centers, that extra cost translates directly into a little boost in the rates that everybody pays.

Short Wave
What Are AI Data Centers Doing To Your Electric Bill?

Right.

Short Wave
What Are AI Data Centers Doing To Your Electric Bill?

So this is surprisingly hard to figure out.

Short Wave
What Are AI Data Centers Doing To Your Electric Bill?

This wave of new data centers is just starting, for one thing.

Short Wave
What Are AI Data Centers Doing To Your Electric Bill?

It's not exactly clear what the costs will be.

Short Wave
What Are AI Data Centers Doing To Your Electric Bill?

You have some people saying electric bills could jump a lot, like $70 a month.

Short Wave
What Are AI Data Centers Doing To Your Electric Bill?

And others say there could even be cases where data centers actually reduce people's bills if utilities can spread all their fixed costs across this growing base of customers.

Short Wave
What Are AI Data Centers Doing To Your Electric Bill?

But based on what's happening in, for instance, Ohio and Pennsylvania, where utilities have proposed big increases in electricity rates, it seems like data centers there at least will likely cost an average household at least a few extra dollars every month.

Short Wave
What Are AI Data Centers Doing To Your Electric Bill?

Basically, Mike would like electric utilities to handle power lines for data centers the way they already handle power lines for solar and wind farms.

Short Wave
What Are AI Data Centers Doing To Your Electric Bill?

So here's an example.

Short Wave
What Are AI Data Centers Doing To Your Electric Bill?

Right now, there's a company that wants to build a big solar farm called Cassius Blue in southern Virginia.

Short Wave
What Are AI Data Centers Doing To Your Electric Bill?

That's named for a really pretty butterfly species, by the way.

Short Wave
What Are AI Data Centers Doing To Your Electric Bill?

Okay.

Short Wave
What Are AI Data Centers Doing To Your Electric Bill?

So in order for Cassius Blue, the solar farm, to connect to the electrical grid,

Short Wave
What Are AI Data Centers Doing To Your Electric Bill?

Huh.

Short Wave
What Are AI Data Centers Doing To Your Electric Bill?

Okay.

Short Wave
What Are AI Data Centers Doing To Your Electric Bill?

So it sounds like if you are a solar or wind farm generating electricity, you have to pay for the power lines.

Short Wave
What Are AI Data Centers Doing To Your Electric Bill?

That is the way the system works right now.