Latest news with #CathyKunkel
Yahoo
a day ago
- Business
- Yahoo
Report: Ratepayers will foot the bill for power transmission project
Jun. 7—MORGANTOWN — Depending on who you ask, NextEra's MidAtlantic Resiliency Link transmission project will either take advantage of West Virginia ratepayers and countryside to power up data centers in Virginia — or it'll be an economic boon to the Mountain State, generating hundreds of jobs and hundreds of millions in tax revenue. The Institute for Energy Economics and Financial Analysis is solidly in the former camp. In a May report compiled by Cathy Kunkel, "West Virginia Ratepayers Footing the Bill for Infrastructure Build Out, " the IEEFA makes the claim that two power transmission projects slated to run through West Virginia on their way to northern Virginia will cost West Virginia ratepayers more than $440 million over the next 40 years despite the demand being almost entirely attributable to data centers. A data center is a physical room, building or facility that houses IT infrastructure for building, running and delivering online applications and services, according to IBM. One of those projects, a billion-dollar transmission line that includes NextEra's MidAtlantic Resiliency Link, is looking at parts of Monongalia and Preston counties as a route for the 105-mile "major highway " of 500-kilovolt overhead transmission lines running from Greene County to Frederick County, Va. The project will require a 200-foot right of way along its entire length and terminate in northern Virginia, which already has the highest concentration of data centers in the world. The power-hungry facilities are being built at an increasingly rapid pace. According to the IEEFA, electricity demand across the 13-state territory under grid operator PJM Interconnection remained relatively flat for nearly two decades. That's changed in the last three years due almost exclusively to the rise of data centers. As of 2023, data centers accounted for more than one-quarter of the electricity consumption in the state of Virginia, based on data presented by IEEFA. One large data center, the report states, can draw as much power as a city. The think tank says the traditional method of cost allocation — spreading the cost of capital investments across the customer base — isn't equitable when capital improvements are being constructed to feed a single customer or a very small group of customers. "As this report explains in greater detail, traditional methods of cost allocation for major new transmission projects in PJM have not yet been reconsidered in light of the new challenges posed by data center demand growth." The Dominion Post reached out to NextEra with three questions: What benefit will West Virginians receive in exchange for the large transmission lines running through rural parts of the state ? What percentage of the power being pulled from Pennsylvania to Virginia will support data centers ? Will residential ratepayers end up subsidizing the construction of this project in any way ? "The MidAtlantic Resiliency Link is one of the transmission projects PJM selected to enhance grid reliability for customers locally and across the region, " NextEra replied in a statement. "While it's part of a regional solution, the local benefits are significant. The [MARL ] would create hundreds of construction and support jobs, which will, in turn, drive significant investment in the local economy, growing existing businesses and attracting new businesses. Importantly, West Virginia is projected to receive an estimated $150-$400 million in taxes over the 40-year life of this project, depending on the length and route of the final transmission line. The [MARL ] would help drive economic development throughout the state." But before any of that comes to pass, a route must be finalized. Some residents in Monongalia and Preston counties have started voicing concerns about the possibility of having the transmission lines run through or near their properties. Property owners in rural, wooded and farming areas fear they'll be forced to give up ground through eminent domain should their land fall in the chosen path. On May 29, the Preston County Commission passed a resolution opposing the MARL project as currently proposed and urging state and federal regulators, as well as NextEra, to halt development of the project through Preston County. Asked whether a similar resolution might come out of Monongalia County, Commissioner Sean Sikora said the commission is doing its due diligence and has reached out to Preston County for a copy of the resolution—but isn't ready to take any kind of public stance on the matter. NextEra has conducted a series of open house-style public meetings in recent weeks to discuss, among other things, the potential routes, and intends to make its choice known to the various state public service commissions this fall. According to the current timeline, the project is to be completed by the end of 2031.
Yahoo
a day ago
- Business
- Yahoo
Report: Ratepayers will foot the bill for power transmission project
Jun. 7—MORGANTOWN — Depending on who you ask, NextEra's MidAtlantic Resiliency Link transmission project will either take advantage of West Virginia ratepayers and countryside to power up data centers in Virginia — or it'll be an economic boon to the Mountain State, generating hundreds of jobs and hundreds of millions in tax revenue. The Institute for Energy Economics and Financial Analysis is solidly in the former camp. In a May report compiled by Cathy Kunkel, "West Virginia Ratepayers Footing the Bill for Infrastructure Build Out, " the IEEFA makes the claim that two power transmission projects slated to run through West Virginia on their way to northern Virginia will cost West Virginia ratepayers more than $440 million over the next 40 years despite the demand being almost entirely attributable to data centers. A data center is a physical room, building or facility that houses IT infrastructure for building, running and delivering online applications and services, according to IBM. One of those projects, a billion-dollar transmission line that includes NextEra's MidAtlantic Resiliency Link, is looking at parts of Monongalia and Preston counties as a route for the 105-mile "major highway " of 500-kilovolt overhead transmission lines running from Greene County to Frederick County, Va. The project will require a 200-foot right of way along its entire length and terminate in northern Virginia, which already has the highest concentration of data centers in the world. The power-hungry facilities are being built at an increasingly rapid pace. According to the IEEFA, electricity demand across the 13-state territory under grid operator PJM Interconnection remained relatively flat for nearly two decades. That's changed in the last three years due almost exclusively to the rise of data centers. As of 2023, data centers accounted for more than one-quarter of the electricity consumption in the state of Virginia, based on data presented by IEEFA. One large data center, the report states, can draw as much power as a city. The think tank says the traditional method of cost allocation — spreading the cost of capital investments across the customer base — isn't equitable when capital improvements are being constructed to feed a single customer or a very small group of customers. "As this report explains in greater detail, traditional methods of cost allocation for major new transmission projects in PJM have not yet been reconsidered in light of the new challenges posed by data center demand growth." The Dominion Post reached out to NextEra with three questions: What benefit will West Virginians receive in exchange for the large transmission lines running through rural parts of the state ? What percentage of the power being pulled from Pennsylvania to Virginia will support data centers ? Will residential ratepayers end up subsidizing the construction of this project in any way ? "The MidAtlantic Resiliency Link is one of the transmission projects PJM selected to enhance grid reliability for customers locally and across the region, " NextEra replied in a statement. "While it's part of a regional solution, the local benefits are significant. The [MARL ] would create hundreds of construction and support jobs, which will, in turn, drive significant investment in the local economy, growing existing businesses and attracting new businesses. Importantly, West Virginia is projected to receive an estimated $150-$400 million in taxes over the 40-year life of this project, depending on the length and route of the final transmission line. The [MARL ] would help drive economic development throughout the state." But before any of that comes to pass, a route must be finalized. Some residents in Monongalia and Preston counties have started voicing concerns about the possibility of having the transmission lines run through or near their properties. Property owners in rural, wooded and farming areas fear they'll be forced to give up ground through eminent domain should their land fall in the chosen path. On May 29, the Preston County Commission passed a resolution opposing the MARL project as currently proposed and urging state and federal regulators, as well as NextEra, to halt development of the project through Preston County. Asked whether a similar resolution might come out of Monongalia County, Commissioner Sean Sikora said the commission is doing its due diligence and has reached out to Preston County for a copy of the resolution—but isn't ready to take any kind of public stance on the matter. NextEra has conducted a series of open house-style public meetings in recent weeks to discuss, among other things, the potential routes, and intends to make its choice known to the various state public service commissions this fall. According to the current timeline, the project is to be completed by the end of 2031.
Business Insider
25-04-2025
- Business
- Business Insider
Meta's data center could be 'transformative' for Louisiana, utility says—as long as customers pay the $5 billion power bill
In Louisiana, a battle is heating up over who will pay for the new power plants needed to serve the $10 billion data center Meta is building in the state's northeastern corner. Meta announced in December the 2,000-acre Richland Parish data center campus, which is expected to be completed in 2030. The company plans to use the data center to train AI models. Consumer advocates and climate groups filed new testimony with the Louisiana Public Service Commission on April 11, pushing the state regulator to reject a request by Meta's electricity provider to shift $5 billion in construction costs for the plants on its entire customer base. Entergy Louisiana has proposed building three new natural gas power plants to serve Meta's data centers in the state. As an investor-owned utility, Entergy can seek regulatory approval to bill its customers for the costs of building the new plants as long as it successfully shows that the plants are in the public interest. Entergy has argued that Meta's data center could be "transformative" for Lousiana once built, saying the facility could provide 300 to 500 jobs with an average salary of $82,000. The testimony from advocates and climate groups argued that the utility's 1.1 million electric customers shouldn't have to foot the bill for Meta's power appetite. Entergy did not respond to a request for comment from Business Insider. Meta declined to comment. Beyond the $5 billion in cost recovery for the plants, the utility's plan would "put other ratepayers at risk of having to absorb hundreds of millions, if not billions of dollars, of additional costs" associated with Meta's data center, said Cathy Kunkel, an energy consultant testifying on behalf of the Union of Concerned Scientists and Alliance for Affordable Energy. That's because Meta's power needs have grown since the Big Tech giant first announced its plans to build an AI data center in Louisiana, adding to Entergy's costs of service. Earlier this year, Meta was planning for more than two gigawatts of capacity in Louisiana, according to a Threads post by Meta CEO Mark Zuckerberg in January. That amount of electricity is double what is being planned at the Crusoe data center in Abilene, Texas, widely thought to be the first site for Stargate, a $500 billion joint venture between Oracle, OpenAI, and SoftBank to build AI data centers in the US. Since then, Meta has asked Entergy for even more electricity, according to the utility's filings with the LPSC. The exact amount requested is unknown, as the information is redacted from the filings. Saddling customers with Meta's costs is especially risky given the uncertainties surrounding AI's electricity demand, Kunkel said. AI models could become more energy efficient in the future, or companies could focus more on energy efficiency as a means to enhance profit, she said. That could result in Meta "choosing to scale back or exit" the project early. Recent reports that Amazon and Microsoft are pulling out of data center leases have helped stoke concern that the AI development boom is slowing down. Entergy's request for cost recovery has attracted a wide range of "intervenors," or parties that want to weigh in with an opinion before the LPSC. Even Walmart in Louisiana has testified, seeking assurances that Meta's escalating power demand won't affect it and other Entergy customers in the state.
