PROACTIVELY PROTECTING LOCAL FAMILIES FROM RISING ENERGY COSTS

In response to concerns across the Tennessee Valley about data center power usage, TVA is working to make sure residential customers don’t bear a heavier financial load.

County government was not privy to or involved in negotiations with the proposed data center on Flatwoods Road, but following the April 1 confirmation of its location here, I contacted ATVG Executive Director Mike Arms about possible effects on local power bills. The Association of Tennessee Valley Governments (ATVG) advocates for this region’s residents to TVA. I was appointed to the ATVG board representing Middle Tennessee, and am its youngest member.

Thankfully, my voice and others from the ATVG board are being heard. The Tennessee Valley Authority is working to create a new rate class for data centers, ensuring that they pay for the additional electrical demand. TVA is involved in discussions with local power companies and will be proposing actions to its board of directors in August at the earliest.

TVA spokesman Scott Brooks told Knoxville’s WATE yesterday that “As a public power provider, TVA is not saying no, but we’re saying ‘yes, but.’ The ‘but’ is you need to work with local power providers if that’s where you’re going to connect and make sure that they can handle the load without putting a strain or an additional burden on their customers.”

WATE reported that there are currently three data centers in the Knoxville Utility Board service area that have a range of energy usage. The largest of those data centers is contracted to use up to 73 megawatts of power, which is less than half of some of the “hyperscale” facilities that are being developed in other areas of the country.

The data center locating on Flatwoods Road in Lawrence County is projected to use 5 megawatts of power, which is similar, and in some cases less than, other local industries. The substation that will serve the data center has a capacity of 150 MW but is using only 40 MW.

Brooks further stated that TVA is looking to ensure that data centers pay their fair share and do not put the financial burden on other customers. Like many people moving to the region, Brooks said data centers are also interested in coming to the TVA’s service area because of its reliable, low-cost electricity.

TVA provides power to 153 local providers across Alabama, Georgia, Kentucky, Mississippi, North Carolina, Tennessee, and Virginia. TVA is working with all of them to determine how to manage additional demands without placing a financial burden on the rest of the system and its 10 million other users. I'm thankful to have a voice in that process through ATVG.

https://www.wate.com/news/top-stories/tva-considering-rate-changes-due-to-data-centers/