Folks who are saying the price is going up because of demand are technically right but it’s kinda misleading. People get mad when they don’t understand their bills so I wanna add to that:
With more demand in the system, more distribution equipment is used and will need more maintenance. Your electric bill has fixed fees and usage fees. The fixed fees include the cost of capital upgrades, which cover these costs. It’s not a direct 1:1 cost for each connection, as the upstream feed capacity needs to increase too.
Cost per KW may go up too, it depends on the way your utility is set up. Time of day pricing is meant to encourage offsetting costs and sometimes large customers pay proportional to the contribution to peak demand.
It doesn’t help that this increase in demand comes when so much of the grid is old as fuck in north america. But we live in interesting times.
Data centers forcing grid upgrades is all the more reason their rates should be higher. They should be paying 100% of those capital upgrade costs, too!
Folks who are saying the price is going up because of demand are technically right but it’s kinda misleading. People get mad when they don’t understand their bills so I wanna add to that:
With more demand in the system, more distribution equipment is used and will need more maintenance. Your electric bill has fixed fees and usage fees. The fixed fees include the cost of capital upgrades, which cover these costs. It’s not a direct 1:1 cost for each connection, as the upstream feed capacity needs to increase too.
Cost per KW may go up too, it depends on the way your utility is set up. Time of day pricing is meant to encourage offsetting costs and sometimes large customers pay proportional to the contribution to peak demand.
It doesn’t help that this increase in demand comes when so much of the grid is old as fuck in north america. But we live in interesting times.
Data centers forcing grid upgrades is all the more reason their rates should be higher. They should be paying 100% of those capital upgrade costs, too!
Okay these are literally things that you can vote for you need to find out who regulates energy rates and get on their ass