White House and Governors Press for Action on AI-Driven Electricity Crisis
The White House and a bipartisan group of governors are urging the operator of the mid-Atlantic power grid to take immediate action to address the growing concern of rising electricity costs and supply shortages, particularly in relation to the increasing demand for power from artificial intelligence (AI) data centers. This issue is becoming a pressing concern for voters ahead of the upcoming elections.
Pressure to Boost Energy Supply and Curb Price Hikes
The National Energy Dominance Council and governors from several states, including Pennsylvania, Ohio, and Virginia, are pushing for PJM Interconnection to hold a power auction, allowing tech companies to bid on contracts to build new power plants. This move aims to increase energy supply and mitigate price hikes. The Trump administration and governors are expected to sign a statement of principles on Friday, as reported by Bloomberg.
According to Taylor Rogers, a White House spokeswoman, “Ensuring the American people have reliable and affordable electricity is one of President Trump’s top priorities, and this would deliver much-needed, long-term relief to the mid-Atlantic region.” Pennsylvania Gov. Josh Shapiro is expected to attend the White House event, with his participation contingent on including a provision to extend a limit on wholesale electricity price increases for the region’s consumers.
Consumer Advocates Weigh In
Consumer advocates argue that ratepayers in the mid-Atlantic electricity grid are already paying billions of dollars in higher bills to support the power demands of data centers, without seeing a corresponding increase in the construction of new power plants. This has led to concerns that the costs are not being effectively utilized to meet the rising demand for electricity.
The issue of electricity costs is becoming a key concern in upcoming elections, with pivotal contests in November likely to be influenced by communities experiencing rapid increases in electric bills or disputes over who should bear the costs of data centers. In some areas, data centers are being built and coming online faster than power plants can be constructed and connected to the grid.
Economic Concerns and Midterm Elections
Electricity costs were a significant issue in last year’s elections for governor in New Jersey and Virginia, as well as in Georgia, where Democrats won seats on the state’s utility regulatory commission. Voters in New Jersey, Virginia, California, and New York City cited economic concerns as the top issue, highlighting the importance of affordability in the upcoming midterm battle to control Congress.
According to a report by PowerLines, gas and electric utilities sought or won rate increases of over $34 billion in the first three quarters of 2025, more than double the same period a year earlier. This trend is likely to continue, making the issue of electricity costs a critical concern for voters and policymakers alike.
For more information on this developing story, visit Here
Image Source: www.twincities.com
