It’s raising questions over whether diverting power to higher-paying customers will leave enough for others and whether it’s fair to excuse big power users from paying for the grid. Federal regulators are trying to figure out what to do about it, and quickly.
Front and center is the data center that Amazon’s cloud computing subsidiary, Amazon Web Services, is building next to the Susquehanna nuclear plant in eastern Pennsylvania.
The arrangement between the plant’s owners and AWS — called a “behind the meter” connection — is the first such to come before the Federal Energy Regulatory Commission. For now, FERC has rejected a deal that could eventually send 960 megawatts — about 40% of the plant’s capacity — to the data center. That’s enough to power more than a half-million homes.
Transmission providers don’t build much new line for other reasons… It’s hard, for example, to get utilities, environmental groups, landowners, and regulators from multiple jurisdictions to agree on things. This idea that providers would build more if there was just a bit more demand on the system (instead of simply pocketing the tariff increase) is fanciful. Moreover, that demand would simply generate more headwinds for renewables, who actually need transmission.