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Idaho lawmaker aims to shield customers from rising power rates tied to data centers

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KUNA, Idaho — Data centers — like the massive one under construction by Meta in Kuna — are popping up across the country, supporting services like artificial intelligence and cloud storage. They also use a lot of power.

As these large-scale power users come online in Idaho, one lawmaker wants to ensure residents don’t see higher utility bills as a result.

“It’s basically a ratepayer protection bill against large data loads,” said Republican Rep. Stephanie Mickelsen.

Mickelsen said other states are already facing issues with big energy consumers raising costs for everyday consumers — she hopes to prevent that in Idaho.

“I want to make sure that the older people that are on fixed incomes and the young families that are trying to get started, they don’t get priced out of affordability in our state because of data centers,” Mickelsen said.

WATCH | Hear from Mickelsen and Idaho Power about data centers in Idaho

Idaho Lawmaker aims to shield customers from rising power rates tied to data centers

Currently, rate rules are decided by the Idaho Public Utilities Commission, but Mickelsen wants guidance written into state law.

House Bill 756 would require any new power customer that needs 20 megawatts or more of power to fund the infrastructure themselves and ensure rate increases aren’t passed on to other customers.

“We have to make sure that our PUC (Public Utilities Commission) has the proper guidance and the proper tools in the toolbox to make sure that they can allocate those costs to the cost-causer, not every user on the system,” explained Mickelsen.

RELATED | Inside the secretive data centers powering the AI boom

For reference, Idaho Power says one megawatt powers about 760 homes — and most data centers use much more than that.

“Typically, those types of facilities [have] energy requirements in the hundreds of megawatts,” said Megan Ronk, Director of Customer Experience & Economic Development with Idaho Power. “That is not the type of energy that we just have available on our systems.”

Ronk said large Treasure Valley projects like Meta’s data center in Kuna and Micron's $50 billion expansion already fund new electrical infrastructure upfront.

“The reality is that those projects very much pay their own way,” Ronk said.

She acknowledged concerns about rising prices due to massive consumer demand, but said currently, the Idaho Public Utilities Commission ensures rates remain fair for all customers.

“We have a structure in place and have for decades to ensure that that type of cost shifting doesn’t occur,” Ronk said.