AMERICANS are warned that their electricity bills could see a massive 142 per cent spike.
Power providers are asking regulators to approve $29 billion in rate increases in the first half of the year.
Consumer advocates are concerned that the costs are being put on individuals rather than corporations[/caption]
Price hikes are set to vary from area to area[/caption]
This represents a 142 per cent surge from similar rises seen at the same time last year, according to reports.
It come amid a soaring demand for data centres as AI continues to grow in America’s digital infrastructure.
But Donald Trump‘s Energy Secretary has warned that this soaring demand could lead to 800 hours of energy blackouts a year by 2030.
Secretary Chris Wright said: “This report affirms what we already know.
“The United States cannot afford to continue down the unstable and dangerous path of energy subtraction previous leaders pursued.
“In the coming years, America’s reindustrialization and the AI race will require a significantly larger supply of around-the-clock, reliable, and uninterrupted power.”
But price hikes are set to vary from area to area.
National Grid, which serves customers in New York and Massachusetts, is among the providers set to hike prices.
The company was given permission by regulators to raise consumers’ bills by $50 a month.
Elsewhere, PG&E has also requested the green light for a $3.1 billion bill hike in April.
The company serves 5.5 million customers across California.
Texas provider Oncor, which provides for 13 million households, has also asked for $834 million.
Charles Hua, executive director of PowerLines, told the Financial Times: “What we’re seeing is a deer-in-headlights dynamic.
“A lot of states don’t have a playbook for how they can meet rising demand while balancing affordability and utility bills.”
Utility companies say the extra money will go towards repairing infrastructure damaged by the mounting effects of climate change.
But consumer advocates are concerned that the costs are being put on individuals rather than corporations.
Ari Peskoe, director at Harvard Law School’s electricity law initiative, told the FT: “These closed door proceedings are problematic as the regulator doesn’t get the benefit of multiple parties weighing in and we don’t know.
“Meanwhile the utility is spending billions of dollars on infrastructure.”
