Economic growth is stunted in Wyoming due to lack of electrons, industrial customers say
Wyoming is facing an electricity supply shortage hindering economic growth, including for data centers. Industrial groups and economic developers are advocating for legislative changes to allow "third-party" power generation, bypassing traditional utilities. However, two proposed bills aimed at this were not sponsored by a legislative committee, indicating a rejection of these proposed regulatory changes.
Wyoming is grappling with a severe electricity supply deficit that industrial customers, including trona and soda ash producers and data center developers, say is stunting economic growth. Frustrated by the slow response of traditional utilities to escalating power demands, a coalition of industrial groups, independent power producers, and economic development organizations pushed for legislative reforms.
Last week, the Wyoming Legislature’s Joint Minerals, Business and Economic Development Committee considered two draft bills aimed at allowing industrial customers to connect directly to "third-party" electric generation facilities, bypassing existing regulated utilities. Proponents, like Holland and Hart attorney Thor Nelson representing the Wyoming Industrial Energy Consumers Association, argued this model would accelerate the addition of massive new electricity capacity, insulated from the slow, risk-averse approach of utilities.
However, the committee declined to sponsor the bills; one failed a vote, and no action was taken on the other, though members expressed interest in future discussions. Utilities such as Rocky Mountain Power and Cheyenne Light, Fuel and Power generally oppose such measures, citing concerns about their regulated monopoly model that ensures service to all customers and recovers investments. Lawmakers, including Sen. Stacy Jones (R-Rock Springs) and Sen. Tara Nethercott (R-Cheyenne), criticized Rocky Mountain Power for its inability to meet demand, with some alleging the utility underutilizes its coal-fired plants in Wyoming.
The Wyoming Public Service Commission independently clarified rules for nonpublic utility generators, further complicating the state’s approach. Despite utility assurances of shifting power from Oregon and Washington back to Wyoming, industrial groups, citing PacifiCorp data, project a significant power shortfall of up to 1,718 megawatts by 2030, underscoring the urgency for new solutions.