No. of Recommendations: 5
MPSC Chair Dan Scripps said. "If ultimately this is a bubble, if this is all overblown and the load doesn’t materialize, that again even in that worst case scenario, customers are still protected.”
I don’t know the details of the deal, but how are customers protected?
Is he saying they’re building data centers, contracting for electric power without the power company building any accompanying infrastructure? No new power lines, trunk lines, transformer stations? No guarantees that the data centers will pay for it whether or not it is in use?
That would be a wildly unusual contract, and one that I doubt most any bank or investor putting the money up for such a center would agree to, because not only would the investment lose 100% of its equity (worst case) but they’d also be on the hook for subsequent downstream costs initially borne by the power company in the understanding that the power would be used.
And let’s pretend that the data center is a raging success. It the power they consume going to require any new investment *at all* by the power provider? If the provider is sitting at 80% today, maybe not. If they’re closer to full out, then they’re going to have to do something to have some overhead room in case of unusual weather or other situations.
(Yes, I know data centers pledge that they will “cut back” if needed, which I will believe when the Tooth Fairy visits and tells me it’s true.)
