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United States2025-01en

Electricity Rate Designs for Large Loads: Evolving Practices and Opportunities

Summary

The United States faces a significant challenge with rapidly increasing electricity demand, primarily from data centers and AI applications, which poses financial and operational risks to utilities and regulators. This technical brief examines evolving practices and opportunities in electricity rate designs and service agreements to address these large loads, aiming to ensure reliable and affordable power, mitigate risks to ratepayers, and support clean energy goals. The document reviews various tariff design elements and provides examples of proposed and approved tariffs, indicating an ongoing process of adapting regulatory and utility practices to meet future energy needs.

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