Tech ratepayer pledge may be more bark than bite - but still matters
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Tech ratepayer pledge may be more bark than bite - but still matters
"Tech execs are expected at the White House next week to sign what President Trump called a "ratepayer protection pledge" during Tuesday's State of the Union. OpenAI and Amazon are taking part in the "pledge" initiative, the companies confirmed. Others expected include Google, Meta, Microsoft, xAI and Oracle, Fox News reported."
""is a big bully pulpit that could influence state economic regulators around the country even if it lacks an implementation plan or regulatory teeth," said Rob Gramlich, founder of Grid Strategies, a consulting firm."
""Data center 'pledges' to ring-fence costs are both non-binding and not new," TD Cowen analysts said in a note. FERC, with urging from DOE, is working on policies that push large industrial customers to cover costs like needed grid upgrades."
Major technology companies including OpenAI, Amazon, Google, Meta, Microsoft, xAI, and Oracle are signing a White House "ratepayer protection pledge" to prevent consumers from bearing energy costs associated with AI infrastructure buildout. However, analysts note these pledges are non-binding and lack concrete implementation mechanisms. The Federal Energy Regulatory Commission and Department of Energy are developing policies requiring large industrial customers to cover grid upgrade costs. Over a dozen states have already modified power rules to require data center developers to shoulder more electricity expenses. While the White House initiative may lack regulatory teeth, it could influence state economic regulators and shape hyperlocal policy debates, though existing power market rules already require large new customers to pay their fair share.
Read at Axios
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