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Public commenter tells Illinois Commerce Commission data centers are driving up electricity costs
Summary
Michael Zurakov of Third Act told commissioners data centers are increasing demand and capacity prices, cited a Grayslake site holding 1.6 GW of utility power and proposed requiring large loads to bring generation or pay supplemental fees, changing rate allocation, and speeding clean generation interconnections.
Michael Zurakov, representing Third Act, used the Commission's public comment period on Sept. 4, 2025 to warn that the rapid build-out of large data centers is contributing to rising electricity prices in Illinois and recommended policy changes to mitigate impacts.
"Most of the data centers are grid powered, and each one needs the electricity of a small city," Zurakov said, citing a developer claim that a data center under construction in Grayslake had "secured 1.6 gigawatts of utility power," which he equated to the power of about 500,000 homes. He told commissioners that data-center energy consumption nationwide doubled between 2018 and 2023 and that anticipated growth is driving up capacity prices in PJM's markets, increasing charges allocated to all utility customers.
Zurakov urged several policy responses: require new large-load customers either to bring their own generation or pay a supplemental fee to offset the cost of adding utility generation; adopt rate structures that better allocate capacity-related costs to new large loads; expedite grid connections for ready clean generation projects; and reduce permitting delays that slow deployment of clean generation.
The Commission did not respond directly to comments during the meeting, per its public comment procedures. Commissioners had previously outlined that commenters are allowed three minutes and that the Commissioners would not respond directly during the comment period.
Zurakov handed in a copy of his remarks for the record; the Commission proceeded to regular agenda items after public comment concluded.
