Voter anger over the cost of living is hurtling forward into next year’s midterm elections, when pivotal contests will be decided by communities that are home to fast-rising electric bills or fights over who’s footing the bill to power Big Tech’s energy-hungry data centers.
Electricity costs were a key issue in this week’s elections for governor in New Jersey and Virginia, a data center hotspot, and in Georgia, where Democrats ousted two Republican incumbents for seats on the state’s utility regulatory commission.
Power prices are set at the bid price of the last generation unit that is needed. Usually this is the running cost of that unit, with no additional premium for installation costs.
In a competitive market the infrastructure costs can only be reclaimed if demand remains high.