DOE Pushes $26 Billion Ratepayer Plan as Power Demand Surges in AI Race
Updated
Updated · Utility Dive · Jun 5
DOE Pushes $26 Billion Ratepayer Plan as Power Demand Surges in AI Race
1 articles · Updated · Utility Dive · Jun 5
Summary
Alex Fitzsimmons said the Energy Department is pressing utilities and tech companies to implement Trump’s “ratepayer protection” pledge, aiming to add power for AI-driven load growth without shifting costs to residential customers.
The approach relies on large-load tariffs that require data centers to fund generation, network upgrades and long-term take-or-pay contracts, while DOE offers low-cost financing through its energy lending office.
Fitzsimmons pointed to a $26 billion loan package for Georgia Power and Alabama Power, a planned Indiana Michigan Power rate cut tied to data-center growth, and a new NV Energy-Microsoft tariff as early models.
DOE is also defending case-by-case emergency orders keeping coal, oil and gas plants online, arguing dispatchable capacity is needed as demand rises and gas-turbine backlogs can delay replacements for years.
The administration’s broader strategy favors dispatchable resources over subsidized wind and solar, which Fitzsimmons said can raise system costs and undermine the economics of plants needed to meet peak demand.