The data centers are coming. The question is how many will there be and who will pay for the power and transmission they need?
In Colorado and across the country utilities are beginning to take steps — mainly through special tariffs for large-load customers — to try to answer both questions and in doing so protect consumers.
The Colorado Public Utilities Commission is requiring Xcel Energy, the state’s largest electricity provider, to use a set of “principles” when negotiating with data center developers, including upfront fees, 15-year contracts, minimum bills, security deposits and early-exit fees.
The Tri-State Generation and Transmission Association, the wholesale power provider for electric cooperatives in four states including 15 in Colorado, is also developing a “large-load tariff” with similar protections.
The PUC also directed Xcel Energy to file a proposal for a large-load tariff in January that will be more binding than the principles, which are negotiating points.