Illustration: Sarah Grillo/Axios
House Republicans are looking for answers from energy regulators on rising power demand driven by AI data centers, Nick has learned.
Why it matters: The letter to FERC underscores divides about fossil fuel generation that are bubbling up at a time of massive change for the energy sector.
Driving the news: E&C Chair Cathy McMorris Rodgers and Rep. Jeff Duncan wrote commissioners yesterday probing what FERC's doing to tackle "demand growth from data centers and industrial sectors."
- The letter raises concerns about the retirement of fossil fuel and nuclear generation, when wind and solar account for most of the new power looking to get onto the grid.
- "Restrictions on the use and development of thermal generation, along with policies that lead to premature retirement of existing thermal resources threaten to undermine long-term planning, affordability, and strain an already taxed electric grid," the lawmakers wrote.
- Notably, they argue that colocating big generation with data centers risks "taking baseload, reliable generation off the grid at the expense of ratepayers."
Our thought bubble: The letter makes no mention of the transmission infrastructure that'll be needed to account for new demand.
- This debate is settling into a fossil fuels vs. renewables frame — but we could see that change as transmission comes increasingly into focus.
What we're watching: E&C is planning a budget hearing with FERC commissioners next week, where this is sure to come up.
