Today’s White House AI Energy “Deal” With Select Governors Will Do Nothing for Years to Reduce Energy Prices for Consumers
WASHINGTON, D.C. — A White House meeting between President Trump, Energy Secretary Chris Wright and Secretary of the Interior Doug Burgum, and the governors from Pennsylvania, Maryland, and Virginia’s outgoing governor (but not its governor-elect) released a fact sheet on the energy demands of AI data centers. After the meeting, the group announced a plan for an emergency wholesale electricity auction for PJM Interconnection, the private grid operator for 13 U.S. states and the District of Columbia. In response, Tyson Slocum, director of Public Citizen’s energy program, issued the following statement:
“The White House’s supposed deal is a nothingburger that will do nothing to lower consumer energy costs today. This deal simply “urges” the regional grid operator, PJM Interconnection, to make the reforms, despite PJM not being invited to participate in the discussions.
“PJM’s price problem stems from its flawed capacity market design, which immediately monetizes short term demand increases into high prices for consumers. PJM’s problem therefore is less about data centers and more about its flawed capacity market design
“The massive projected energy demands for AI data centers are based on representations by Big Tech that society needs its vision for an artificial intelligence-driven lives and economy. There has been little public discussion, let alone buy in, about implementing Big Tech’s Orwellian vision for an AI-dominated world. Before we attempt to reorder power markets to accommodate Big Tech, we first need a public forum to discuss whether Big Tech’s AI vision is consistent with the social and economic priorities of Americans.
“To implement the White House proposal, the grid operator would need to make a filing under Section 205 of the Federal Power Act that must be noticed at the Federal Energy Regulatory Commission for public notice and subjected to comments and protests. After reviewing all comments and protests, FERC would issue a ruling. Any intervenor in the proceeding can request rehearing of that FERC order, which if FERC denies it would open the door to litigation.
“So there is no agreement on the table, there is no clear path to implementation, and any FERC filing seeking to implement it would be subject to likely strenuous legal objections by stakeholders.”
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