This one should stir up some debate.
Law firm Vinson & Elkins argues that, in the age of the data center, state public utility commissions should broaden their mandate to focus not only on fair rates but also on economic competitiveness.
In an article titled “Data Centers as Engines of Economic Growth,” law firm partner Jeffrey Jakubiak says data centers create economic benefits, pointing to Northern Virginia, where property taxes dropped and 12,000 jobs emerged as a result of the region’s data center boom.
Therefore, he says, commissions should take a new approach to approving utility infrastructure requests, permitting them to recover costs “that promote economic development, not merely investments undertaken in response to specific requests for electric service…The alternative — clinging to a narrow view of regulation — risks leaving states behind in the global race for digital infrastructure,” he says.
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For a completely different take, check out James Baratta’s article “Lightning in a Bottle,” which criticizes utility regulation for an entirely different reason.
As Baratta sees it, we’re entering “perfect storm” territory, where flawed, captured and confused utility regulators allow data centers to drive up electricity prices.
“There’s a greater need for power at precisely the moment when there are limits, both real and artificial, on how much supply can be added. But against the backdrop of these factors, the IOUs [investor-owned utilities] are using their immense influence to push for even higher rates than the economic fundamentals would indicate. As a result, faith in the regulatory compact appears to be waning,” he writes in The American Prospect.
As a result, “2025 may be the year that this regulatory framework collapses under its own contradictions,” he says, noting that lawmakers in six states have introduced measures to limit utility return on equity.
Getting Distributed Energy Right in Maryland
Maryland’s agency that protects ratepayers says the state is entering a pivotal moment that will determine whether energy consumers benefit from distributed energy or just pay more.
The moment comes as the state public service commission considers utility plans to comply with FERC Order 2222, which gives distributed energy resources access to wholesale electricity markets.
“Without the right direction, the state risks drifting toward fragmented, utility-centered systems that impose unnecessary costs on customers and will be difficult to coordinate with regional markets and neighboring states,” said David Lapp, who heads the Office of People’s Council (OPC).
In comments filed with the commission, the OPC criticized Baltimore Gas & Electric’s preliminary plan to institute a distributed energy resource management system (DERMS). The plan has a high price tag ($9.11 million) but provides scarce information about how it will support near-term virtual power plant deployment, the agency said. It also criticized similar plans by Delmarva Power, Southern Maryland Electric Cooperative and Potomac Edison.
The OPC’s comments to the public service commission are here.
Virtual Event: Learn What’s Next for Think Microgrid
Think Microgrid’s regular meetings are usually reserved just for its members—but on Thursday, December 11, 4 pm EST, the non-profit organization is opening the doors to everyone. This virtual event offers a chance to see what Think Microgrid has accomplished in 2025 and hear about its plans for 2026. You’ll also get a firsthand look at how Think Microgrid educates, engages, and informs communities, policymakers, and the media on the unique role microgrids play in resilience, climate action, and equitable energy solutions. The Open House is free and open to anyone interested in learning more about Think Microgrid. Enter the virtual event here. https://luma.com/tafkb6ig
What an Austin, Texas “Solar Standard Offer” Project Looks Like
Austin Energy has released details about its first solar standard offer project, comprising 812 warehouse rooftop solar panels with a capacity to produce 660,000 kWh annually.
Under the program, commercial property owners can either host solar panels on their rooftops or lease their roof space to third-party solar developers. The utility then buys the energy produced by the panels.
If a business leases its rooftop or parking lot space, it pays no upfront costs and can generate immediate passive income.
“It’s a major opportunity to meet our climate goals and create long-term value for everyone involved,” said Richard Genece, Austin Energy vice president for customer energy solutions
Where the Jobs Are
In another sign of electricity becoming the dominant form of energy, the International Energy Agency reports that the power sector is leading the sector’s job growth.
Energy jobs overall grew 2.2% last year to 76 million workers, up 5 million since 2019.
The power sector accounted for three-quarters of the growth and is now the largest employer in energy, surpassing fuel supply.
What drove the electric growth? Mostly solar, but also nuclear, grids, energy storage and electric vehicles.
Unfortunately, early data indicate 2025 will be less rosy. IEA expects energy employment to grow only 1.3%, reflecting larger economic trends this year.
Still, energy workers are in short supply — and are expected to be for some time — especially electricians, pipefitters, line workers, plant operators and nuclear engineers. Too many workers are retiring, and too few are entering the energy industry
The industry needs to attract 40% more workers by 2030 to keep the skills gap from widening.
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