Rising Electric Demand Calls for Solutions
Meeting growing electric demand requires collaboration between utilities, federal and state policymakers, and customers. That was the big takeaway from last month’s United States Energy Association’s (USEA) Energy-Tech Connect Forum in Washington, D.C. LPPC president-elect Tom Falcone and LPPC vice chair Javier Fernandez, CEO of Omaha Public Power District, sat alongside Dan Brouillette, then-President and CEO of Edison Electric Institute (EEI), and Marc Reitter, President and COO of AEP Ohio, to share insights and experiences related to their efforts to address load growth, particularly for data centers and artificial intelligence.
“While steep spikes in load growth aren’t unprecedented in this country, today’s challenges are unique in that we’re also trying to decarbonize,” said Falcone. “Utilities are up for the challenge, but it will require collaboration with all stakeholders.”
As the CEO of a utility that must double its generation capacity by the end of the decade, Fernandez is encouraged by the positive economic implications of increased demand. “Omaha is home to the second largest data center in the country, and growth is happening so quickly that it’s reshaping the landscape,” said Fernandez. “These challenges due to growth are a blessing. Developers, customers, and utilities work together to meet common goals, and it’s undeniable that utilities play a vital role in driving economic progress.”
Utilities are building new generation and transmission facilities as fast as they can, but the current system “is not built for speed,” said Falcone. “We need policies that support our effort to meet the demand for technologies like AI and meet decarbonization goals, but right now, permitting inefficiencies and supply chain issues threaten that progress.” He emphasized that industry and policymakers in Washington, D.C., need to work together to streamline permitting and siting, including adequate staffing of permitting agencies.
Brouillet echoed this sentiment, “The permitting process needs to be updated. The technology has outrun the government.”
