Sierra Club: Data Centers Must Pay Their Fair Share of Energy Costs

Valley Forge, PA- Today, 14 Sierra Club chapters delivered a letterto PJM, urging the Mid-Atlantic and Midwest grid operator to ensure data centers are paying their fair share of electricity bills.

PJM is currently in the process of finalizing a plan that would provide guidance for how large loads can be added to the grid. Two weeks ago, PJM's Member Committee failed to reach a majority on any proposed plan. Now the PJM Board of Managers is expected to deliver a proposal to the Federal Energy Regulatory Commission this month.

Sierra Club chapter directors-representing 13 states and the District of Columbia covered in PJM's footprint-urged in a letter that PJM select a plan that protects ratepayers from more skyrocketing energy bills and further strengthens the grid that powers 65 million households. The letter itemizes three priorities:

1. Prevent new large loads that do not bring their own generation from raising capacity prices for existing ratepayers.
2. Adopt a binding reliability backstop that squarely assigns risks to the entities that create them.
3. Ensure that data centers do not distort or raise PJM's capacity market prices for all other consumers.

In response, Sierra Club Senior Advisor Jessi Eidbo issued the following statement:

"PJM's Board of Managers is tasked with a critical decision that could affect millions of families' energy bills, health, and daily lives for years to come. As our grid faces a historic amount of load growth brought on in part by data centers, we must do everything we can to protect everyday Americans from continuing to pay for costly infrastructure development solely to serve Big Tech's needs.

"PJM has a duty to ensure that whichever plan they select will prioritize reliable, affordable energy for everyday Americans who rely on the nation's largest grid operator to keep the lights on at home. We are eager to learn how the Board of Managers consider our recommendations as they finalize their plan for large load interconnection throughout the PJM footprint, and sincerely hope the 10-member Board rises to meet the challenge."

About the Sierra Club

The Sierra Club is America's largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit https://www.sierraclub.org.