EEI - Edison Electric Institute Inc.
05/12/2026 | Press release | Distributed by Public on 05/12/2026 08:45
Electric Companies Stepping Up to Protect Customers Amid Data Center Buildout
Electric Companies Stepping Up to Protect Customers Amid Data Center Buildout
Electric Companies Stepping Up to Protect Customers Amid Data Center Buildout
Highlighting Rate Freezes, Fair Share Agreements, & Other Customer Benefits
WASHINGTON (May 12, 2026) -
A slew of recent announcements from investor-owned electric companies highlight their successful work powering the lives of the nearly 3 in 4 Americans who depend on them for reliable, affordable energy-and protecting them from bill increases related to data centers.
EEI members are powering the jobs, industries, and technologies of tomorrow while ensuring large load projects benefit customers and communities. EEI on Monday updated a snapshot of these projects, tracking $890 billion in investments and more than 55 gigawatts of connected load and the customer benefits that these projects provide.
What to Know:
DTE Energy Proposes Rate Freeze Thanks to Data Centers
DTE Energy announced it plans to forgo future rate increases for at least two years following its recent filing to the Michigan Public Service Commission. Data centers are the driving force behind the announcement, with DTE Energy's two data center contracts expected to generate nearly $9 billion in grid improvements funded by large load customers.
"This new industry is not only helping to grow Michigan's economy, but once the data centers are fully online, it will make energy more affordable for all customers while bolstering our investments in creating the grid of the future," said DTE Energy President and CEO Joi Harris.
Rate Freezes in Alabama, Georgia Protect Customers
Georgia Power and Alabama Power have announced similar data center-driven rate freezes in Southern Company's service territory. Georgia Power's freeze runs through at least 2028, while Alabama Power's extends through 2027.
"Importantly, the cost of building infrastructure for [data centers] is not borne by other customers. In fact, in Southern Company territory, this growth is helping us freeze rates in many jurisdictions for the next few years," EEI Vice Chair Chris Womack, Chairman, President, and CEO of Southern Company, said during a recent EEI-Axios Live event.
Google to Pay Full Cost of Power for Three Oklahoma Data Centers
Oklahoma Gas & Electric Company (OG&E) recently announced it would power three Google data centers in the Sooner State, with Google paying 100 percent of the costs to connect to the grid and its share of the generation that will be required to meet the company's data center needs.
OG&E will use the framework developed with Google later this year when it seeks state regulatory approval for a large load tariff.
Entergy Customers to See $7B in Benefits From Large Load Customers
Entergy estimates its 2.3 million customers in Arkansas, Louisiana, and Mississippi will see $7 billion in total savings from data center customer agreements. The company's work with large customers like data centers is strengthening the local grid and enabling efficient new generation to be built sooner than planned-with no cost impacts to existing customers. In Arkansas alone, customers will see $1.7 billion in savings from projects involving Google and AVAIO Digital.
Since 2024, a series of projects with tech companies and data center developers have brought $49 billion in planned investment to the region, creating thousands of high-tech jobs, millions in tax revenues, improved local infrastructure, and other new business and employment opportunities.
NiSource GenCo Model to Generate $1.25B in Customer Savings
NiSource's NIPSCO Generation LLC , under what the company calls its unique GenCo model, will deliver $1.25 billion in cost savings for customers-or up to $115 each year for the average household. The GenCo model isolates costs and risks of new generation for large customers, ensuring the drivers of demand pay their fair share and that residential customers are not impacted.
NiSource announced a data center agreement with a subsidiary of Alphabet last month and expanded an existing agreement with Amazon, broadening the company's hyperscaler portfolio while ensuring residential customers aren't subsidizing infrastructure buildouts.
Customer Protections Advance in Wisconsin, Colorado, Oregon
Wisconsin regulators recently approved We Energies' Customer Protection Plan , which ensures costs to serve data centers will not be subsidized by or shifted to the company's residential customers.
Separately, Wisconsin regulators in May approved a specialized contract for Alliant Energy to power a Meta data center without impacting residential customers. In neighboring Iowa, Alliant Energy is in the midst of a five-year rate freeze enabled by its data center and large load customers.
In Oregon, the state public utility commission recently approved a Portland General Electric proposal to charge customers based on their contribution to demand growth-ensuring large customers pay their fair share.
And, in Colorado, Xcel Energy submitted a proposal for a large load tariff to the state's utility commission, as investor-owned electric companies continue to power innovation while protecting residential customers from the costs of new infrastructure.
To date, 23 states have approved a large load tariff, with decisions pending in seven others.
What They're Saying:
"I hope all the other states keep saying we don't want data centers and they all come to Arkansas and we're able to take advantage of the benefits of having them there." - House Natural Resources Committee Chairman Bruce Westerman (R-AR) (Electric Perspectives, May 7)
"There's a remarkable consensus that data centers should pay for their costs and assume their risk, because you don't want stranded assets and so forth. They have a lot of money that they're willing to invest. They're talking about how they can actually enhance the grid around a community, because it's in their interest to have that kind of reliability." - Representative Scott Peters (D-CA) (Electric Perspectives, May 7)
"We as an Administration, the states, and the utilities like Southern Company and Entergy in Louisiana, are doing a great job meeting [hyperscaler] demand. We're doing everything possible to set the stage for success." - National Energy Dominance Council Director Peter Lake (Electric Perspectives, April 20)
"Our strategy is centered on protecting our customers from cost increases associated with these projects while supporting responsible growth in Indiana." - NiSource President and CEO Lloyd Yates (Building Indiana Business, April 24)
"We proactively worked with our state leaders to recruit a new industry with attractive power agreements that protect and benefit our existing customers." - Entergy Chair and CEO Drew Marsh (Yahoo Finance, April 23)
"We're partnering to ensure large load growth strengthens our overall system, benefits our local communities, maintains our states' clean energy goals and doesn't increase costs for our existing customers." - Xcel Energy Chairman, President, and CEO Bob Frenzel (Utility Dive, May 6)
In the News:
WEC Energy Welcomes 'Balanced' Wisconsin Data Center Tariff
"'This tariff provides a balanced approach, reliable electric service for our very large customers with a predictable cost profile, protection of other customers from bearing any cost to serve these very large customers, protection of the company's financial health, and support for economic development and growth in the region,' said WEC Energy President and CEO Scott Lauber." (S&P Global, May 6)
Data Center Panic Gets Electricity Prices Wrong
"Newly published research finds no meaningful link between the number of data centers in a state and its electricity prices and points instead to a far less glamorous culprit: bad state energy policy." (The Daily Economy, May 4)
Lawmakers Agree the Data Center Boom Shouldn't Hurt Ratepayers
"'We all want to make sure that locals don't bear the burden of the energy needs of data centers,' said House Energy and Commerce Chair Brett Guthrie (R-KY). 'It's a problem I think everyone on this committee agrees on.'" (E&E News, April 30)
5 Key Takeaways From House Energy and Commerce Committee Hearing on the Grid and AI
"'Under the oversight of our regulatory commissions, we are implementing well-designed arrangements to ensure large-load customers pay their own full cost, enter long-term service arrangements that reduce stranded-asset risk, and provide financial security measures that protect existing customers,' said Duke Energy Senior Vice President for Grid Strategy, Planning, and Integration Nelson Peeler." (Electric Perspectives, April 30)
Why AI Data Centers Might Lower Electricity Prices-Not Raise Them
"A study recently published by The Brattle Group forecasts that a 10% increase in grid utilization will save Americans more than $100 billion on their utility bills over the next decade. [Pacific Gas & Electric Company] has stated that for every 1,000 megawatts of new electric demand from data centers, its other electric customers may save between 1% and 2% on their monthly bill in the long term." (Big Think, April 22)
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EEI is the association that represents all U.S. investor-owned electric companies. Our members provide safe, reliable electricity for nearly 250 million Americans, and operate in all 50 states and the District of Columbia. Collectively, the electric power industry supports more than 7 million jobs in communities across the United States and drives economic growth and prosperity. EEI also includes hundreds of industry suppliers and related organizations as Associate Members.
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About EEI
About EEI
EEI is the association that represents all U.S. investor-owned electric companies. Our members provide safe, reliable electricity for nearly 250 million Americans, and operate in all 50 states and the District of Columbia. Collectively, the electric power industry supports more than 7 million jobs in communities across the United States and drives economic growth and prosperity. EEI also includes hundreds of industry suppliers and related organizations as Associate Members.
EEI - Edison Electric Institute Inc. published this content on May 12, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 12, 2026 at 14:45 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]