LPPC Op-ed: Growing Demand for Electricity Requires New Policy Solutions
Tom Falcone is the president of the Large Public Power Council, an advocacy organization that represents 29 of the largest public power systems in America, and the former CEO of the Long Island Power Authority.
America wants more. More manufacturing, more innovation, more opportunities for economic growth. Technologies like AI and advanced semiconductors are meeting the moment, providing enterprises and individuals with computing power, jobs and investment opportunities. And the utilities that supply the electricity necessary to manufacture and power these technologies are working to meet rapidly rising demand, but it’s getting harder to keep up.
For more than 20 years, utilities have had flat or declining electricity loads, but now, load growth is expanding faster than anyone was expecting. The Energy Information Administration anticipates that U.S. electricity demand will grow by 4.6% this year, the highest in several decades, due to the electrification of the economy and the expansion of data centers and advanced manufacturing centers. The Electric Power Research Institute projects that data centers alone could consume up to 9% of U.S. electricity generation by 2030.
At the same time, America also wants more reliability, more efficiency, more convenience — all without escalating the cost of electricity. This can be particularly challenging in areas affected by extreme weather conditions like hurricanes, tornadoes and wildfires.
Public power utilities are experiencing this shift firsthand. Large Public Power Council member utilities in states like Georgia, Nebraska, Texas and Arizona are scaling up their generation capacity to meet surging demand.
In Omaha, for example, the local public power utility, Omaha Public Power District, is doubling its capacity by 2030. Metropolitan Omaha is now the second-largest in the U.S. for megawatt capacity dedicated to data centers, per S&P Global’s 2024 U.S. Datacenters and Energy Report.
Similarly, Salt River Project must double its power resource capacity to keep up with demand and meet its 2035 sustainability goals. The utility serves Maricopa, Gila and Pinal counties in Arizona, a hub for advanced semiconductor manufacturing and one of America’s fastest growing regions.
But this is not just a technological transformation. It’s an economic one. America’s economic growth hinges on our nation’s ability to generate and deliver reliable, affordable energy to power these industries.
That’s why public power utilities — which power some of America’s largest cities like Jacksonville, Phoenix and San Antonio — are stepping up to meet the demands of our nation’s rapidly evolving energy landscape. They are forging new partnerships with industry. Look no further than South Carolina, where Santee Cooper is seeking proposals to complete construction of the V.C. Summer Nuclear Station to help meet the region’s increasing energy needs, driven by the rise of AI.
To fully unlock the potential of these advancements however, we need partnership from policymakers in Washington. We need forward-thinking policies that allow public power utilities to finance and build critical infrastructure projects faster without raising costs for the communities we serve.
Specifically, public power utilities depend on tax-exempt financing and elective pay tax credits to build infrastructure and keep electricity affordable. These are proven policies that help keep electricity costs low for American families and businesses.
We also need to build infrastructure faster in America, which is why our industry is calling for reform of the federal and state licensing and permitting process.
Current permitting and licensing requirements too often delay project timelines, driving up costs and slowing a utility’s ability to meet surging energy demand. Streamlining federal and state approvals will help public power develop critical infrastructure — transmission, generation, pipelines and storage. And since public power utilities are not-for-profit, all savings from reduced delays and lower costs are passed directly to American consumers.
Achieving this requires clear coordination among federal agencies, state regulators and the courts to expedite approvals. Public power communities must have a voice in transmission planning, with fair cost allocation overseen by the Federal Energy Regulatory Commission. And reforms at the Nuclear Regulatory Commission and in Congress are needed to cut delays and lower costs for licensing nuclear, hydro and pipeline projects.
Lastly, we need to safeguard reliability — the lights have to come on when you flick the switch. That’s why the Environmental Protection Agency must re-evaluate its power plant carbon dioxide rule. As it currently stands, the rule’s timeline makes compliance impractical given its reliance on nascent technology and supply chains.
The world’s leading innovators and manufacturers are calling for increased electricity capacity to power critical industries. Public power utilities are ready to meet that demand, but we can’t do it without Washington policymakers.
