Mazie Hirono Asks FERC Officials: How Will You Ensure Data Center Costs Aren't Passed To Consumers?
Senator Mazie Hirono questioned Federal Energy Regulatory Commission (FERC) officials about preventing the energy costs of AI data centers from unfairly burdening consumers. She raised concerns about cost shifting related to network upgrades. Hirono also noted that some jurisdictions are enacting legislation to prevent data center construction due to these issues.
During a Senate Energy Committee hearing, Senator Mazie Hirono (D-HI) questioned officials from the Federal Energy Regulatory Commission (FERC) regarding the financial impact of AI data centers on consumers. Senator Hirono emphasized her priority on energy affordability and expressed concern that the costs associated with data center energy consumption could unfairly burden ratepayers.
Addressing Commissioner Judy Chang, and later Commissioner Danly, Hirono specifically asked what FERC is doing to prevent "cost shifting" where data center related network upgrade expenses are transferred to consumers. Commissioner Danly explained that FERC's existing Section 206 actions include components for identifying and limiting cost shifting, as well as promoting transparency of costs triggered by data centers and other large loads connecting to the grid.
Earlier in the hearing, Senator Hirono also pressed FERC on its evaluation criteria for a proposed offshore natural gas import terminal and pipeline in Hawaii, initiated by Longboard and its parent company JERA. She inquired if FERC would consider the implications of having two public utilities providing energy in Hawaii and how environmental factors are assessed, particularly in light of Supreme Court decisions limiting downstream impact considerations.
Senator Hirono concluded her data center-related questions by noting that some jurisdictions are already passing legislation to prevent data centers from being built due to these financial and infrastructural concerns.