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Township says power-cost allocation for data centers is controlled by state regulators
Summary
Residents asked the township to prevent data centers from shifting increased electricity costs to residents; staff responded that the Public Utility Commission regulates utility cost allocation, limiting what the township can require in zoning.
Residents pressed the board to ensure that any increase in electricity demand from data centers and battery installations would not raise costs for other customers.
Steve Kane urged that owners "bear any cost increase in the supply" and proposed on-site generation or long-term purchase contracts to isolate public customers from higher rates. "Any cost increase that results from the increased demand on the system... should be borne by the owners of the data center or BESS, not the public," Kane said.
Staff and a committee member acknowledged the concern and said the ordinance attempts to avoid shifting costs, but noted legal limits: oversight of public power supply and cost allocation is primarily the province of the state Public Utility Commission. Staff said the township can request its state legislators provide guidance to the PUC but cannot itself set utility rate allocation.
The board recorded the resident concerns and said it would compile them for legal review, while noting that securing local control of utility cost allocation likely requires state-level action.
