Today’s data centers may well be the most distinctive single customer loads electric utilities have seen in decades. As sizes and numbers grow, it’s unsurprising that integrating new data centers into existing tariff and rate frameworks is increasingly complex. Innovative tariff structures are necessary to meet energy needs while ensuring reliable interconnection to the grid.
Given the significant stakes—potentially hundreds of millions of dollars in annual costs—stakeholders must contemplate tariff design and commercial considerations that address the needs of all parties involved. The authors, Anant Kumar, Chris Nagle, Viktoria Lineva Chalker, and Allen Hu, explore these considerations and possible paths forward.
Read more about tariff design and commercial considerations for data centers and utilities here