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Public commenter warns data centers are driving up Illinois electricity prices, urges fees or self-generation
Summary
Michael Zurakoff of Third Act told the Illinois Commerce Commission that large data centers are contributing to rapidly rising electricity costs and suggested requiring new large loads to bring their own generation or pay supplemental fees and accelerating clean-generation interconnections.
Michael Zurakoff, speaking on behalf of Third Act at the Sept. 4, 2025 Illinois Commerce Commission meeting, urged regulators to consider how new large electricity loads—particularly data centers—are affecting electricity costs for Illinois consumers and businesses.
"Electricity costs are rising for Illinois consumers and businesses about 2 to 4 times faster than the general inflation," Zurakoff said, citing industry observers and a market monitor. He said the rapid addition of large data centers is "one of the main causes," noting that many data centers are grid-powered and "a single data center now under construction in Grayslake has, 'secured 1.6 gigawatts of utility power,' according to the developer," which he said is equivalent to the power of about 500,000 homes. Zurakoff also cited a nationwide trend in which annual data-center energy consumption doubled between 2018 and 2023 and warned that projected future demand affects PJM Interconnection's capacity price, which is reflected in consumer bills.
Zurakoff proposed several approaches the commission could explore to limit bill impacts on other ratepayers: requiring new large-load customers to bring dedicated generation or pay a supplemental fee to offset costs of added generation; creating rate structures that allocate the cost of increased capacity more fairly when a new large load seeks utility power; and expediting grid connections and reducing permitting delays for clean-generation projects already in the pipeline.
The commission's presiding speaker thanked Zurakoff and closed the public-comment portion of the meeting; commissioners did not respond directly during the meeting to the suggestions. Zurakoff's remarks were recorded as the lone public comment for the session.
