Electricity usage within the United States is reaching record levels and the demand is expected to continue to rise. Artificial intelligence (AI), crypto mining and data center technology play a role in increased demand. It’s understandable why our members would question whether the increase in technology and load will result in increased rates and higher electric bills.
For Roughrider Electric Cooperative, the answer is no. Roughrider Electric is a member of Basin Electric Power Cooperative. As our wholesale electric provider, Basin Electric developed a Large Load Program designed to insulate our existing members from the costs and risks associated with serving new large electric loads.
When a data center or other large load connects to our system, it is required to pay for the infrastructure needed to serve the load. Those costs are not shifted to our existing membership.
In fact, data centers specifically can often strengthen our system. Because they consume power around the clock, they consume unused capacity on the grid that would otherwise not be used. That steady demand provides reliable revenue, which strengthens the financial health of our cooperative. Beyond our cooperative, data centers can also help contribute to the economic growth and health of our local communities.
So, what are the primary drivers behind the rate increase we have seen over the years? They include growth in traditional load, commodity price variability, increased planning reserve margins (regulations) as well as continued investments in reliability.
The bottom line is data centers are not driving your electric bill higher. When properly planned, they help us maintain stable rates and position our system to meet the growing needs for the future.