Stability
Local Interventions
Retain the Right to Curb or Shut Down Energy During Citywide Emergencies
Local governments should institute a binding clause into the energy approval process stating that the city retains the power to curb or temporarily shut down a data center’s energy to prevent disruptions in continuous service for residential, citywide needs in the event of an emergency (e.g., heatwave). Note: Cities may need to coordinate with utilities […]
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Local governments should institute a binding clause into the energy approval process stating that the city retains the power to curb or temporarily shut down a data center’s energy to prevent disruptions in continuous service for residential, citywide needs in the event of an emergency (e.g., heatwave).
Note: Cities may need to coordinate with utilities or state-run public utility commissions in order to retain this right.
Strong example
A bipartisan coalition of state legislators representing ratepayers across the PJM region (an area covering electricity for all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of Columbia) submitted a proposal demanding that data centers joining PJM’s grid will be subject to interruptible service, meaning that PJM can force data centers to stop using electricity during times of peak demand. Tech companies have pushed back.
State & Regional Interventions
Protect Grid Stability
Institute Safeguards to Mitigate Inconsistent Monthly Energy Usage Tariffs and special contracts can mitigate the harms that can occur when data center usage spikes. These inconsistencies make it harder for utilities to cover the fixed costs that serve the load. These protections include: Demand Charges These charges are based on the peak demand that may […]
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Institute Safeguards to Mitigate Inconsistent Monthly Energy Usage
Tariffs and special contracts can mitigate the harms that can occur when data center usage spikes. These inconsistencies make it harder for utilities to cover the fixed costs that serve the load. These protections include:
Demand Charges
These charges are based on the peak demand that may occur during the billing period. They ensure that utilities can recover the cost of providing reliable service during swings.
Demand Shedding
This is a safeguard imposed through a tariff or demand-response program (depending on size and utility type). This requires data centers to reduce their load during certain periods, such as during an emergency or peak time. Provisions to ensure that data centers can and do reduce load include making this participation mandatory and instituting penalties for failure to respond to an interruption event.
Retain the Right to Curb or Shut Down Energy During Peak Demand or Emergencies
Utility companies must retain the power to interrupt service to prevent disruptions for ordinary ratepayers during times of peak demand or in the event of an emergency (e.g., heatwave).
Strong example
A bipartisan coalition of state legislators representing ratepayers across the PJM region (an area covering electricity for all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of Columbia) submitted a proposal demanding that data centers joining PJM’s grid will be subject to interruptible service, meaning that PJM can force data centers to stop using electricity during times of peak demand. Tech companies have pushed back.
Institute Electricity Caps to Ensure Data Centers Are Not Consuming a Disproportionate Amount of Energy
Limit the amount of electricity a service provider can provide to data centers in the course of a calendar year.
example
Maine caps the share of in-state electricity sales from the power provider to data centers at 25 percent.
Require Data Centers to Abide by Energy Efficiency Standards and Best Practices
States can require that data center projects abide by energy-efficiency standards.
Strong example
In California, data centers must comply with Energy Code requirements, including the use of energy-efficient technologies.