Are AI Datacenters Increasing Electric Bills for American Households? This is an important analysis to read, especially for our state leaders. This article is based on the grid in Texas (ERCOT) and the East Coast (PJM) but the reasoning still applies to us. The conclusion: Datacenters are not the primary cause of rising electricity bills — poor market design is. "The fault is government policy, not AI."
In PJM, we think poor market design is the main culprit. Most of the 15%
increase in household electricity bills in PJM is driven by a widely
misunderstood and somewhat obscure mechanism: the BRA capacity auction.
Now look at Texas. The state is witnessing an equivalent AI buildout,
with OpenAI, Google DeepMind, Anthropic all building massive facilities.
Yet power futures in Texas have moved only a few percent in the past
year. No 9x spike, no crisis, very different market design.
Datacenters do contribute to incremental load growth and modestly higher energy prices in both regions (forward energy prices rose 11–20% in both PJM and ERCOT). But the dramatic bill increases hitting PJM consumers — the 9.3x capacity price spike translating to roughly $25–30/month more per household — are primarily the product of PJM's centrally planned capacity auction design amplifying uncertain forecasts, not of datacenters physically consuming too much power. The same datacenter growth in Texas, under a different market structure, has produced no comparable price shock for consumers.
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This is apparently
AOC's former climate activist, and it's a sight to behold as she finally understands that climate activism was all bullshit. The clues have always been there. She just needed to see.
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This is why I don't get excited about a lot of things in the news these days. You read this –
it's basically a confession. So there was rampant election fraud. Yet, what's going to happen? Will we get reform and integrity? I'm not holding my breath. Why even report stuff like this anymore?
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I was reading this about a
language snafu in the Metro Council. It seems a figure of speech was taken seriously, and the council member even furthered the confusion by issuing an apology in Spanish. People thought that diversity would bring about a Federation of Planets type of society, but instead we have this. So some guy came up with an
Accent Converter for video meetings. I have mixed feelings about this. It's better to let people see how you really are, but if getting people to understand difficult accents really helps move things along, then I guess it's better than the alternative.
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AI apps designed for the legal profession aren't as good as plain old ChatGPT. That's quite the opposite of what we see in the medical profession, where ChatGPT is inferior to apps trained on medical datasets. So legal AI startups can't get off the ground. But the legal profession should be one area where AI excels. My guess is that the models are not well trained or the architecture needs improvement.
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