alt Hacker NewsI don’t understand why entry of a large consumer of electric in to an area should result in higher residential electricity prices.
The new large-consumer can pay for the electricity it uses all by itself. If new generating capacity is required to meet the new, higher, demand, that should be factored in to the supply contract with the new large-consumer.
What is the rationale for jacking up residential retail prices? And what is it supposed to achieve?
If the argument is the whole sale price increases because there’s more demand, none of that new demand is coming from the pre-existing residential users, what does it have to do with them?
> If new generating capacity is required to meet the new, higher, demand, that should be factored in to the supply contract with the new large-consumer
My understanding is this wasn't done.
> What is the rationale for jacking up residential retail prices?
The most understandable explanations I've heard had to do with grid upgrades. Crap the utility owns and controls and has to change to accomodate the new power flows.
More often, however, it looks like local and state government engaging in industrial policy by trying to get residents to subsidise the new datacenters.