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Commission hears warnings on interconnection delays, rising PPA prices and AI data‑center load growth
Summary
Municipal utilities, CCAs and developers warned the commission that supply‑side constraints, long interconnection queues, and growing data‑center demand are raising procurement costs and resource adequacy prices; one CCA presented an hourly‑slice trading proposal it says could cut RA costs.
Multiple witnesses told the commission that the market for new generation and storage faces a supply‑and‑demand imbalance that is increasing procurement costs and causing delivery delays.
Mario DeBernardo of the Southern California Public Power Authority and Derek Dolphy (CMUA) said developers are offering fewer competitive proposals than before the pandemic because demand — from CCAs, IOUs, large commercial buyers and emerging AI/data‑center customers — has increased while interconnection timelines, permitting delays and supply‑chain constraints have lengthened. “We are experiencing a supply and…
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