As demand for energy from data centers grows, so are residential concerns that the power-hungry facilities are driving up their bills.
A newly announced gas power plant could be the testing ground for making sure data center energy costs aren’t passed onto residents.
The 2,000-megawatt Desert Sun Power Plant near Gila Bend will be done in two phases. The cost for the first phase will be covered by all users.
But officials at Arizona Public Service, which is building the plant, say the second phase will use a subscription model from large industrial users like data centers.
Jacob Tetlow is executive vice president with APS.
“They actually front some of the financials to help build it. They're committing to taking that energy for the long term. And then they get rights to that energy," Tetlow said.
He says the proposal still needs to be approved by the state agency that regulates utilities. Tetlow did not say how much the plant will cost to build, or how expensive the subscription models will be.
The gas will come from Texas through the Transwestern pipeline announced in August.
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The states with Democratic AGs argue that federal agencies are side-stepping important environmental laws to carry out the executive order. -
The bill, approved by the House Natural Resources, Energy and Water Committee, would prevent county supervisors from being able to regulate small modular reactors in rural Arizona, if they have met federal guidelines. -
The funds come as utility rates have increased more than inflation -
Arizona’s largest power company, Arizona Public Service, is losing out on $1.8 billion from the federal government. The money would have been used for clean energy projects. -
Arizona Public Service’s proposed rate hike faced criticism this week, as the state utility regulator held a public hearing. Residents told the Arizona Corporation Commission that the proposed rates are not affordable.
