Idea 10 of 11 · working draft
Have Large Power Users Pay for the Grid Upgrades Their Projects Need
Have large power users pay for the grid upgrades their projects need.
Have large power users pay for the grid upgrades their projects need. This includes data centers and other projects that add large amounts of demand. The plan would also improve grid planning and keep advanced nuclear power under consideration for the long term.
What it would do
- Make very large users pay for the power plants, lines, and connections they need.
- Improve grid planning and make cost sharing public.
- Update nuclear licensing while keeping independent safety checks.
- Plan for long-term supply without selling future technology as a quick fix.
Who pays for new demand
Very large customers, such as data centers, should pay for the grid, power plants, and connections their projects need. Those costs should not be passed into home electric rates.
Federal tools
- Use the Federal Energy Regulatory Commission to improve power line planning and the process for connecting to the grid.
- Make cost sharing for large users public, so households can see what they are and are not paying for.
- Update Nuclear Regulatory Commission licensing while keeping independent safety review.
A realistic supply plan
A better grid and advanced nuclear power can help supply last for the long term. Neither removes the need for honest rate design now. Technology that does not exist yet should not be sold as a quick fix for your power bill.
Sources and background
FERC’s fact sheet for Order No. 1920 describes regional transmission planning and cost allocation. It is background on federal grid tools, not proof that the draft’s proposed large-user payment rules are already in force or that household savings are guaranteed.
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Common questions
- What is the “Have Large Power Users Pay for the Grid Upgrades Their Projects Need” idea?
- Have large power users pay for the grid upgrades their projects need.
- How would it work?
- Have large power users pay for the grid upgrades their projects need. This includes data centers and other projects that add large amounts of demand. The plan would also improve grid planning and keep advanced nuclear power under consideration for the long term.
- Who pays for new demand?
- Very large customers, such as data centers, should pay for the grid, power plants, and connections their projects need. Those costs should not be passed into home electric rates.
- Federal tools?
- Use the Federal Energy Regulatory Commission to improve power line planning and the process for connecting to the grid. Make cost sharing for large users public, so households can see what they are and are not paying for. Update Nuclear Regulatory Commission licensing while keeping independent safety review.
- A realistic supply plan?
- A better grid and advanced nuclear power can help supply last for the long term. Neither removes the need for honest rate design now. Technology that does not exist yet should not be sold as a quick fix for your power bill.
- Sources and background?
- FERC’s fact sheet for Order No. 1920 describes regional transmission planning and cost allocation. It is background on federal grid tools, not proof that the draft’s proposed large-user payment rules are already in force or that household savings are guaranteed.
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