CWLP requests change to large load rates amidst area data center speculation
City Water, Lights, and Power (CWLP) in Springfield, Illinois, is seeking to change its large load electricity rates, arguing the current discount is too steep given decreased power generation, especially with data center speculation. This proposal, aimed at potential data center developments, has raised concerns among some residents about electricity costs. A city alderman has also proposed a moratorium on data centers for further research.
Springfield, Illinois's municipal utility, City Water, Lights, and Power (CWLP), is advocating for a change to its large load electricity rates amidst public discussions dominated by data centers and their power consumption. Scott Rogers, CWLP's chief utility engineer, stated that the original 2018 ordinance, designed to incentivize bitcoin miners and credit card transaction merchants, no longer aligns with their decreased power generation capacity.
Rogers emphasized that CWLP could not supply power to a large data center at the current discounted rate, requiring new negotiations. Resident Lori McKiernan voiced concerns that if data centers procure their power supply from the grid and only use CWLP for delivery, it could negatively impact residents' electricity prices. Meanwhile, Ward 2 alderman Shawn Gregory has proposed a moratorium on data center development, citing constituents' desire for more time to research such facilities. The ordinance to eliminate the current large load rates has advanced to debate and requires a simple majority to pass at the upcoming city council meeting.