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Palo Alto utilities report shows rising data‑center load and prompts questions on connection fee increases

5881539 · October 2, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Staff presented the utilities quarterly report, noting increased load from data centers and resource adequacy sales; commissioners pushed for clearer financial metrics and asked that large connection fee increases be brought to the UAC.

City utilities staff presented the quarterly report and updated the Utilities Advisory Commission on changes in electric demand, resource adequacy activity, reliability and proposed connection fee updates.

Utility Director Alan (given name used in presentation) told commissioners the city has seen load increases mainly driven by data‑center growth and that net supply costs in fiscal 2025 were lower than budget because of higher renewable energy credit and resource adequacy sales. Staff warned, however, that resource adequacy purchase costs and western restoration fund costs are projected to raise supply costs in FY2026.

Jim Stack, senior resource planner, explained why the utility both sells and buys resource adequacy (RA): ‘‘We have more…

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