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Legislators press co‑op leaders on data‑center demand and protecting ratepayers
Summary
Committee members pressed Middle Tennessee Electric and the Tennessee Electric Cooperative Association on how TVA and local utilities will manage large data centers — which can demand hundreds of megawatts — without raising residential rates. Presenters said TVA and local utilities must balance economic opportunity, unique rate structures, demand response and potential ownership models.
Committee members asked how TVA and local cooperatives should evaluate the rapid rise of large data centers and the risk those facilities pose to ratepayers. "When you're talking about 1 facility ... consuming a 150 megawatts and going up to 300," a member warned, noting that such demand equals tens of thousands of homes. Chris Jones said these facilities can be "city size demand" and stressed that TVA and local utilities must be given latitude to negotiate fair terms and require demand‑management measures.
Jones and Meyerhoffer said options include unique rate structures, demand‑response requirements, on‑site generation ownership and leveraging advanced nuclear in the longer term. Jones emphasized the need for accountability from large customers "to make sure they're paying their fair share" while protecting existing residential ratepayers.
