Large Loads: Who Bears the Costs of Meeting a Growing Demand for Electricity, with Ben Hertz-Shargel

In this week’s episode, host Kristin Hayes talks with Ben Hertz-Shargel, global head of a research team at Wood Mackenzie that investigates the connections between energy consumers and the electric grid, about how the increasing energy demand from artificial intelligence (AI) is reshaping electricity markets in the United States. In a recent report for Wood Mackenzie, Hertz-Shargel investigates large-load tariffs—a new utility rate plan for large customers, like data centers, whose exceptionally high electricity demand necessitates constructing additional infrastructure. Hertz-Shargel outlines ongoing uncertainty around whether the existing electricity market can accommodate data centers, along with potential avenues for data centers to promote clean energy development and protect individual energy consumers and households from undue electricity price increases. References and recommendations: “Large load tariffs: a looming challenge for utilities” by Ben Hertz-Shargel; https://www.woodmac.com/news/opinion/large-load-tariffs-a-looming-challenge-for-utilities/ “Large load tariffs have a problem. Clean transition tariffs are the solution.” by Ben Hertz-Shargel; https://www.utilitydive.com/news/large-load-clean-transition-tariffs-wood-mackenzie/749722/ “Extracting Profits from the Public: How Utility Ratepayers Are Paying for Big Tech’s Power” by Ari Peskoe and Eliza Martin; https://eelp.law.harvard.edu/extracting-profits-from-the-public-how-utility-ratepayers-are-paying-for-big-techs-power/