Ratepayer Protection Plan Updates and Opportunities

The White House recently announced that more than 200 companies have signed the “Ratepayer Protection Pledge” issued by President Trump on March 4. This pledge requires AI companies and data center developers to “bring their own power” in an effort to protect consumers against electricity price hikes due to expanded data center development and AI demand.

In the US, data centers collectively consumed approximately 4.4% of total electricity generated in 2023 – a figure projected to rise to 12% of total US electricity by 2028 with expanding artificial intelligence workloads. According to the U.S. Energy Information Administration, the United States has seen an average 22.3% increase in residential electricity prices from 2020-2024. As such, the administration is attempting to curb the impact of rapid data center expansion by encouraging companies to commit to pay the full cost of new power generation and infrastructure, and make backup generation available at times of scarcity to prevent power shortages in communities. 

As electricity costs rise and more developers pledge to bring their own power, the demand for co-located power generation for data centers outside of traditional utility infrastructure will continue to grow. Coupled with growing demands for reliable, continuously available backup generation, the propane industry is faced with a unique opportunity to meet the demands of the artificial intelligence era.  Data center developers, AI companies, and government officials all recognize the disproportionate impact that data center expansion is having on residential customers in the US. Propane co-located power generation and backup systems avoid the need for specialized ratemaking exclusively for data centers, and provide a low-carbon, storable fuel source for reliable back up generation.

For more information on the Ratepayer Protection Pledge or its implications for the propane industry, please contact NPGA’s Senior Manager of State Government Affairs, Austin Wicker.