AI consumes too much electricity, American power companies are brewing a big price increase, but consumers are angry: why should I pay for AI?

The electricity bills behind the prosperity of artificial intelligence are becoming a new focal point of controversy in American society.

Recently, U.S. electricity suppliers are seeking to implement significant price increases for consumers due to a surge in demand from data centers, sparking a debate over who should bear the electricity costs of artificial intelligence. According to a recent report by the energy affordability advocacy organization PowerLines, electric companies have applied for regulatory approval for a total of $29 billion in rate increases for the first half of 2025, a staggering 142% increase compared to the same period last year.

These price hikes highlight a core issue: should the soaring electricity costs be shared by all consumers, or should large industrial users driving the new demand be charged directly? According to Bloomberg New Energy Finance, electricity consumption is expected to more than double over the next decade due to energy-intensive AI applications.

Consumer advocacy organizations have raised objections to the price increases, questioning whether household users should bear the costs of ensuring that the U.S. maintains its leadership in AI technology. PowerLines Executive Director Charles Hua stated:

What we are seeing is a state of being caught off guard, with many states lacking solutions on how to meet the rising demand from data centers while balancing electricity affordability.

Significant Electricity Price Increases Have Become a Reality

Several large electric companies in the U.S. are pushing for or have been approved for significant price increases. According to the Financial Times, the electricity company National Grid, which serves customers in New York and Massachusetts, was approved in April for a price increase of $708 million, with monthly fees for each customer rising by up to $50.

PG&E, which serves 5.5 million commercial and residential customers in Northern and Central California, applied for a $3.1 billion rate increase in April. Texas electricity company Oncor, serving 13 million customers, proposed an increase of $834 million in June. Northern Indiana Public Service Company has been approved to raise monthly fees by $23 per customer, totaling $257 million.

Electric companies state that part of the price increase is to repair infrastructure damage that is becoming more frequent due to climate change. Additionally, large capital investments are needed to support the aging U.S. power grid and meet rapidly growing demand.

"High Load Pricing" Mechanism and Clean Energy Agreements

To control bill burdens, an increasing number of electric companies and regulatory agencies are turning to the so-called "high load pricing" mechanism, which charges large energy users for system excess load fees.

Reports indicate that AEP Ohio, an Ohio electric company, submitted an application to the Ohio Public Utilities Commission in October, requesting that data centers pay for 85% of their expected monthly energy usage, even if their actual usage is lower, and also pay an exit fee if the project is terminated.

Another option is a clean energy agreement, where data centers commit to purchasing clean energy through electric companies to fund new renewable energy projects. Alternative solutions are being implemented. In May, Nevada approved a geothermal power purchase agreement with Google, allowing businesses to directly procure clean energy to share infrastructure pressure.

Rich Powell, CEO of the Clean Energy Buyers Association, explained that such agreements "ensure long-term supply while avoiding additional costs for ordinary users."