Both Parties Must Act to Limit Surging Electricity Inflation
Prices are surging in the
Growing demand from information technology and burgeoning artificial intelligence
Wholesale power costs are
The best way to limit new electricity inflation is to encourage production of a variety of low-cost energy sources. Right now,
But these tax incentives are now under threat from some GOP tax writers who have made them a target as part of a $5 trillion tax cut bill Congress will consider this year. Elimination or dilution of these credits would undercut the role of advanced power technology just when its needed most. A new study by the consultancy
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5/6/2025
5/5/2025
It's not surprising then that a group of more than
So far, a
But many
Moreover, Democrats must realize that improving natural gas infrastructure and the role of gas as the key on-demand baseload power source is crucial to U.S. electric grid reliability even as the share of intermittent renewable energy increases. The
As part of energy permitting reform legislation by Congress to be considered this summer, Democrats should support reasonable expansion of natural gas pipelines which can also limit leaks of methane emissions. At the same time, Republicans should support measures to expedite more rapid permitting and building of new interstate powerlines, so that low-cost renewable energy can reach distant markets. Finally, the tech sector itself must continue to make investments in expanded electricity production, supporting federal actions that limit the inflationary impact of their new data centers while using AI to improve grid system efficiency.
Both parties have major vulnerabilities on inflation right now. Democrats lost the 2024 election in large part due to high inflation during the Biden's years in response to the pandemic. Republicans now face voter concerns about rising costs due to new tariffs. Both have strong policy and political incentives to act.
Equally, cheaper electricity is
From
Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.
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