Little Hoover Commission hears split evidence on data centers’ effects on California power bills

Summary

Commissioners heard competing views Dec. 11 on whether rapid data center growth will raise or lower electricity bills: Sen. Josh Becker urged enforceable contracts, demand flexibility and faster permitting; PG&E said large loads could cut average bills if customers pay and energize; industry and ratepayer groups disagreed on data disclosure and short-term rate impacts.

The Little Hoover Commission opened a Dec. 11, 2025 hearing on data centers and California electricity policy with sharply divergent accounts of how rapidly growing computing demand will affect households and businesses.

Senator Josh Becker told the commission that data centers “could be a boon or they could be a big new problem,” and urged a package of enforceable policies so the benefits outweigh the risks. Becker, chair of the Senate Committee on Energy, Utilities and Communications, said new customers should pay for interconnection and distribution upgrades up front, should be required to accept long-term commitments or penalties for early exit, and should participate in demand flexibility programs so they curtail during a few high-stress hours a year. “When data centers fully finance infrastructure they require, we avoid shifting that risk to families and small businesses,” Becker said.

Pacific Gas & Electric Co. painted a different, more optimistic picture. Mike Maderos, PG&E’s vice president for strategic commercial solutions, told commissioners PG&E’s analysis shows that adding gigawatts of data center load could…

Little Hoover Commission hears split evidence on data centers’ effects on California power bills

Summary

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