You may have seen news coverage or heard questions from neighbors about data centers and energy bills. Here's what you need to know, and how you can help share the facts.
Data centers are in the news across the country, and San Diego is no exception. As friends, family and neighbors ask questions, many of them come back to one concern: if a large, new data center connects to the grid, will everyone else pay for it?
California has taken that question head on. This year, the state enacted three new laws, SB 886, AB 2383 and SB 1168, to protect existing customers as large, new electricity users connect to the electric system.
What the new laws do
The laws direct the California Public Utilities Commission (CPUC) to establish rules to help ensure large customers pay the costs associated with serving their electricity needs, rather than shifting those costs to other customers.
SB 886 directs the CPUC to establish new tariff rules and/or update existing electric-service rules for certain large-load customers, including how they pay for the costs associated with serving their demand.
AB 2383 and SB 1168 work alongside SB 886 to strengthen protections for existing customers.
The CPUC will set specific rules through its public process.
The intent is straightforward: large, new electricity users are expected to be responsible for the costs associated with serving their demand while protecting existing customers from unreasonable cost shifts.
Where SDG&E fits in
Our role is to make sure the electric system can serve new demand safely, reliably and affordably while protecting the customers and communities we serve. As part of normal business planning, we routinely evaluate a range of potential projects and opportunities across our region. Every large customer, from hospitals and universities to data centers, goes through the same process under CPUC-approved rules.
It's also important to know what we don't do. SDG&E does not approve or deny projects. Land-use decisions rest with property owners and the applicable local, state or federal agencies. And as with any business customer, conversations about potential projects are confidential.