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Stop Bad Data Centers

Exposing AI Data Center Threats and Harms

Gateway 2

Power & Utility Interconnection

Stop a bad data center from jacking up your utility bills

Data centers need massive amounts of electricity; often enough to power a small city. One of the approvals developers need to move forward is an agreement with the local utility company to meet those power needs. There can be billions of dollars at stake in the form of grid upgrades like new substations, transmission lines, and additional power generation. These agreements have to be approved by the state utility regulator, typically called a Public Utility (or Service) Commission (PUC). 

Communities can advocate for the things that are important to them in the proceedings where the details of these agreements are evaluated and subject to approval.

The proceedings can cover things like impact on rates, type of energy used to power the data center, how the costs for the grid upgrades will be allocated between the data center and utility customers, and how to ensure agreed upon terms will be enforced. Communities have successfully stopped or delayed projects in these proceedings by challenging what is presented by developers and utilities with their own ideas and experts.

The power gateway creates real leverage. The terms of the agreement to power data centers can make or break a project. By engaging in state utility regulatory proceedings, communities and coalitions have the opportunity to define the parameters of these arrangements in a way that aligns with better criteria and advocate for benefits like community investment or funding for bill assistance programs.

If the terms do not align with what communities want to accept, they can advocate that the agreement be rejected to stop the project from moving forward.

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Key Targets (Gatekeepers)

  • Utility company executives and boards: Decision-makers on interconnection approvals and grid upgrades
  • Public Utility Commission officials: State regulators overseeing utility decisions and rate impacts
  • Independent System Operators (ISOs/RTOs): Regional grid coordinators managing interconnection queues
  • State energy regulators: Policy-makers setting grid planning and cost allocation rules
  • Grid engineers and technical experts: Professionals conducting load studies and impact assessments

Possible Interventions

  • Challenge Grid Impact Studies: File technical critiques of developer load studies showing inadequate analysis of cascading impacts on grid stability
  • Expose Rate Increase Projections: Commission independent analysis of ratepayer cost impacts and demand public hearings on cost allocation
  • Demand Community Cost Hearings: Require utility to hold public hearings on who pays for grid upgrades and ratepayer impacts
  • Technical Review of Agreements: Engage grid engineers to identify flaws in interconnection agreements and grid upgrade plans
  • Ratepayer Coalition Building: Unite consumer advocates, fixed-income residents, and businesses around shared grid cost concerns

Gateway Intervention

Campaign Playbook

Each campaign will have it’s own unique challenges and context. We are here to help talk through steps. The steps in this guide are informed by community victories so we aren’t reinventing the wheel. Contact us to talk about your campaign.

1. Learn how to identify and intervene in case(s) about the project

Subscribe to notices on filings made at the PUC to identify when a related case has begun. Identify the process to become a party (“intervene”) and determine whether to join a case depending on priorities and resources or to pursue other types of engagement. Follow which other people or groups intervene or participate, find out what their objectives are, and reach out to those who may be aligned.

2. Define critical issues and/or “red lines” to guide advocacy efforts

What are the most important aspects of the project for you? Is it electricity rates? Environmental pollution/justice? Carbon footprint? Amount and type of community benefits? Are there terms that would allow you to support, or at least not object, to the project? Will you demand a specific mix of generation to power the facility? Are you a no under all circumstances? Be clear on how you want to influence the outcomes and what things you will not accept.

3. Coordinate across other aspects of the campaign (i.e. other Gateways, public pressure efforts, legislative advocacy, etc.)

Communication across the various aspects of campaigns is important to ensure you’re working together and not unintentionally at odds with each other. Though PUC proceedings tend to be legal and technical and less visible, coordinated pressure can be applied across other branches of government (Governor’s office and legislature), on related things happening at the local or federal level, and through media strategy to increase public engagement.

Valuable Allies

You don’t need to take on bad data centers alone. There are organizations and experts who can help. Explore the directory to find other leaders, and discover organizations in the Alliance Map.

Utility Law Attorneys: Navigate PUC procedures and file formal interventions

Grid Engineers: Provide credible technical critiques of load studies

Consumer Advocates: Champion ratepayer interests in cost allocation

Energy Economists: Quantify rate impacts and alternative cost scenarios

Environmental Justice Groups: Highlight disproportionate impacts on vulnerable communities

Gateway 2: Power & Utility Interconnection

Resources & Documents

Essential tools and resource for this gateway.

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Amp Up the People: A Practical Guide for Energy Justice Advocates in Utility Regulation (opens in a new tab)

The Initiative for Energy Justice and Vote Solar co-created this guide for frontline communities navigating utility regulation. Covers Integrated Resource Plans, rate cases, Public Utility Commission…

Complete Resource Guide
Source
Initiative for Energy Justice
Published
September 9, 2024
Read more — Amp Up the People: A Practical Guide for Energy Justice Advocates in Utility Regulation

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