PA Environment Digest Blog: Guest Essay: Three Proposals To Protect Consumers From A.I. Price Increases: Bring Your Own Generation; Data Centers Must Pay Their Fair Share; An 'All Of The Above' Energy Future, Including Renewables

By Kevin Walker, CEO, Duquesne Light

This guest essay first appeared in the Pittsburgh Post-Gazette on July 30, 2025--

I appreciated the Energy and Innovation Summit’s visionary focus on why our nation needs to quickly increase development of a world-class artificial intelligence ecosystem, and the energy supply it requires.

Now, it’s more important than ever to consider the interests of average utility customers in our region, whose electricity bills and reliable service could be materially affected.

PJM, the company that manages the regional electric grid, has projected a 30- to 40-gigawatt energy shortfall (the equivalent of 30 million homes!) in our region by 2030 as building electrification, EVs, and most importantly, data centers soak up enormous amounts of electricity.

Rising prices

As supply tightens and demand accelerates, energy and capacity prices are rising and the higher costs set by PJM are ultimately passed on to consumers.

And while Duquesne Light, which I lead, doesn’t control the cost to generate electricity, as the last-mile provider for that electricity, we are the first to hear about it when bills go up.

Of course, we recognize that solving the mismatch between energy supply and demand will require many solutions, but the Summit has underscored three actions for right now to govern how large-load customers — i.e., the owners of hyperscale data centers — build, operate and connect to our shared grid.

I strongly encourage our legislative and regulatory leaders to consider the following:

Bring Your Own Generation

First, promote BYOG — “Bring Your Own Generation.”

Each local and regional grid has its own unique characteristics. Some have capacity to accommodate large load integration while others are at or near capacity and therefore unable to add additional load without costly and time-consuming upgrades.

Therefore, data center locations must be flexible, based on grid capacity and, when necessary, supply their own generation by either paying to build their own sources or signing long-term agreements that can be a critical enabler of new generation plant financing.

BYOG helps ensure ample supply of energy for the grid, keeps costs down for grid customers and creates more jobs for Pennsylvanians by pairing energy infrastructure with data center development. It’s also a policy President Trump has supported publicly.

Responsible Growth

Second, encourage responsible growth through fair pricing.

Large energy users like data centers must pay their fair share both up front and over the long-term to avoid cost shifting.

Interconnection to the grid, which is necessary even for those that BYOG, requires multi-million-dollar investments.

But beyond the initial connection, data centers must contribute equitably through rate structures that reflect their ongoing, high-volume use.

Bottom line: we must avoid scenarios where smaller, existing residential, commercial and industrial customers subsidize the infrastructure and service needs of new large-load customers.

All Of The Above Energy Future

Third, focus on an “all of the above” energy future.

If we want to power the burgeoning AI economy and keep the lights on for average citizens at the same time, we must stay flexible about how that electricity is generated with the “all of the above” approach: meaning primarily natural gas in the short term followed closely by nuclear, hydro, battery and other storage, wind, solar, etc. as soon as they are technically and commercially mature.

This approach continues to include long-term planning and investments in cleaner energy generation.

Our overall aim is to ensure a future with a reliable, affordable and safe energy ecosystem that also protects the health of our communities and the environment.

The energy ecosystem necessary to bring the vision of AI and energy dominance to life in our region is in place and the excess capacity already built into our grid could allow growth starting right now.

By Pennsylvania law, DLC cannot own or operate the electric generation plants that will power these data centers, but we have invested heavily in the transmission lines, poles and wires that will connect them.

Over the next five years, we’re investing nearly $2.7 billion to strengthen and modernize that infrastructure, including $177 million in upgrades to high-power transmission lines.

Full potential

To unlock the full potential of this moment and ensure economic prosperity for everyone in our region, affordable electricity for the average utility customer must be designed into the system from the start, through the right policies, oversight and accountability.

That’s the only way to ensure that this golden age of innovation truly benefits everyone and provides lasting value for the people of Pennsylvania who will power it.

Kevin Walker is the president and CEO of the Duquesne Light Company.

Resource Links - PA Electric Grid:

-- 30 Stakeholder Comments Received By PUC On Adequacy Of Electricity Supplies In Pennsylvania; Increasing Natural Gas Power Plant Reliability To 90-95% Would Mean No Imminent Capacity Problem [PaEN]

-- PUC Invites Stakeholder Comments On The Issue Of The Adequacy Of Electricity Supplies In Pennsylvania [Background On Issue] [PaEN]

-- Guest Essay: Rewriting The Energy Story — Together - By Stephen M. DeFrank, Chairman, Pennsylvania Public Utility Commission [PaEN]

-- PUC: Brace For Higher Electric Bills As A Result Of Soaring Power Use; Consumers Should Review Energy Options [PaEN]

-- Spotlight PA: Why Pennsylvanians May See Higher Electric Bills This Summer And Next [PJM Auction, A.I. Data Center Power Demands]

-- House Committee Told PA Needs An Energy Policy, Doing Nothing Means We Are Going To Run Out Of Power; Overreliance On One Fuel-- Gas-- Is Raising Electricity Prices [PaEN]

-- PA Elected Officials, Consumer, Clean Energy Advocates Demand Electric Grid Operator PJM Act To Hold Down Electricity Costs [PaEN]

-- North American Electric Reliability Corp. Files Proposed Cold Weather Standard To Improve Reliability For Natural Gas-fired, Other Electric Generators [PaEN]

-- Rise Of The Machines: PA Senate, House Members Express Concern That Demand For Power To Run Computers Is Impacting The Price And Availability Of Electricity For ‘Ordinary People’ [PaEN]

-- PUC House Budget Hearing: We Aren’t Going To Build Our Way Out Of Electric Generation Shortfalls On PJM Grid; We Need To Diversify Our Generation Sources [PaEN]