The Center Square – Right Report https://right.report There's a thin line between ringing alarm bells and fearmongering. Sat, 11 Jan 2025 04:17:37 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 https://right.report/wp-content/uploads/2024/10/cropped-Favicon-32x32.png The Center Square – Right Report https://right.report 32 32 237554330 U.S. Borrowing Hits $710 Billion in First 3 Months of Fiscal Year https://right.report/u-s-borrowing-hits-710-billion-in-first-3-months-of-fiscal-year/ https://right.report/u-s-borrowing-hits-710-billion-in-first-3-months-of-fiscal-year/#respond Sat, 11 Jan 2025 04:17:37 +0000 https://right.report/u-s-borrowing-hits-710-billion-in-first-3-months-of-fiscal-year/ (The Center Square)–The federal government borrowed $710 billion in the first three months of fiscal year 2025, with 10 days before President-elect Donald Trump takes office.

The Congressional Budget Office reported $710 billion in borrowing, including $85 billion in the month of December, according to the latest Monthly Budget Review.

Federal agencies, including the CBO, expect deficit spending to continue despite promises from Trump and others to cut the federal budget.

Trump promised to cut “hundreds of billions” in federal spending in 2025 through the reconciliation process, a parliamentary procedure that allows Congress to expedite the passage of some federal budget legislation.

Trump’s Department of Government Efficiency, run by Tesla boss Elon Musk and entrepreneur Vivek Ramaswamy, also promised to cut the federal government down to size. Earlier this week, Musk estimated DOGE could trim $1 trillion from the federal budget, a sizable amount considering discretionary spending totaled $1.7 trillion in 2023. Generally, Congress spends about half of its discretionary budget on the U.S. Department of Defense.

Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said U.S. borrowing should be a focus as Trump takes office.

“As we start the new year ushering in a new administration and a new Congress, we must not lose sight of the fiscal challenges ahead,” she said. “Our unsustainable debt isn’t something we can just shy away from, as 2025 is packed full of fiscal deadlines. So far we’ve heard much about how lawmakers plan to spend more and tax less; we’ve heard much less about the opposite.”

MacGuineas suggested no new borrowing and guaranteeing all tax cuts and spending increases are fully offset. That’s a daunting challenge for lawmakers as they look to extend the tax provision in the 2017 Tax Cuts and Jobs Act, which the CBO estimated will cost about $4 trillion over the next decade.

Congress has run a deficit every year since 2001. In the past 50 years, the federal government has ended with a fiscal year-end budget surplus four times, most recently in 2001.

]]>
https://right.report/u-s-borrowing-hits-710-billion-in-first-3-months-of-fiscal-year/feed/ 0 231074
Biden Promises Federal Aid as Wildfires Continue to Blaze Across Los Angeles https://right.report/biden-promises-federal-aid-as-wildfires-continue-to-blaze-across-los-angeles/ https://right.report/biden-promises-federal-aid-as-wildfires-continue-to-blaze-across-los-angeles/#respond Fri, 10 Jan 2025 06:11:57 +0000 https://right.report/biden-promises-federal-aid-as-wildfires-continue-to-blaze-across-los-angeles/ (The Center Square)–Three major wildfires continue to ravage Southern California as firefighters battle blazes spread by the dry, powerful Santa Ana winds that blow down the mountains toward the coast.

According to the California Department of Forestry and Fire Protection, as of Thursday afternoon, more than 1,000 structures have been destroyed, and at least five people have died. There have been nearly 13,926 total emergency responses, 92 wildfires and 29,053 acres burned, per the department.

Los Angeles has declared a state of emergency, and the National Guard has been deployed to assist the hundreds of firefighters – including many from other states – fighting the fires.

President Joe Biden has approved further federal assistance for Los Angeles County as the fires continue to raze homes, schools, businesses and other structures, in addition to scorching vegetation and wildlife in their wake.

“The President’s action makes federal funding available to affected individuals in Los Angeles County,” said a Wednesday statement from the Federal Emergency Management Agency. “Assistance can include grants for temporary housing and home repairs, low-cost loans to cover uninsured property losses and other programs to help individuals and business owners recover from the effects of the disaster.”

The White House announced late Wednesday that Biden will not be making a scheduled trip to Italy this week so he can monitor the raging wildfires in Southern California.

Speaking from the White House on Thursday afternoon during a briefing on the fires, Biden said federal funding will cover debris removal, setting up temporary shelters, and paying first responders.

“I told the governor and local officials, spare no expense,” Biden said in noting he’s surging federal resources into Southern California, including 400 federal firefighters, 30 federal firefighting aircraft and other assets.

The president provided some moral support as well for those enduring the fires that have turned portions of Southern California into a hellscape.

“We are with you,” Biden said. “We’re not going anywhere. To the firefighters and first responders, you are heroes.”

There was at least a brief respite on Thursday morning as the Santa Ana winds lessened somewhat, but forecasters warned that critical fire weather conditions would continue over the next several days.

While winds aren’t expected to reach the extremes of Tuesday night – gusts of up to 100 mph were recorded – potentially damaging winds remain in the forecast into the next week.

“High winds and low relative humidity will continue to support critical fire weather conditions in southern California through Friday,” the National Weather Service said on its website as of Thursday afternoon. “Red Flag Warnings remain in effect.”

]]>
https://right.report/biden-promises-federal-aid-as-wildfires-continue-to-blaze-across-los-angeles/feed/ 0 231014
Census to Use Satellite Imagery to Count New Home Builds https://right.report/census-to-use-satellite-imagery-to-count-new-home-builds/ https://right.report/census-to-use-satellite-imagery-to-count-new-home-builds/#respond Wed, 25 Dec 2024 18:16:54 +0000 https://right.report/census-to-use-satellite-imagery-to-count-new-home-builds/ (The Center Square)–The U.S. Census Bureau unrolled a new experimental method of using images from space to count new housing construction.

“For select areas of interest, Survey of Construction (SOC) data collected by field representatives have been replaced with estimates obtained from satellite imagery to demonstrate the efficacy of this data collection method,” Census said in a Dec. 19 release.

The method entails running satellite images through “convolutional neural networks,” or CNNs, to identify construction.

The programs will be able to differentiate excavation, foundation, framing, unfinished roof, and finished roofs, per the Census. It is expected to be able to distinguish between single-family detached, single-family attached, multi-family, and non-residential.

This data will be combined with conventional data Census received from local government offices to give a clearer picture of home construction data moving forward.

The bureau is only using the experimental method in District 7, which includes Texas, Oklahoma, Arkansas and Louisiana.

Data from the district shows 14,100 new housing starts in November.

“This product demonstrates a new computer-vision based approach to monthly economic measurement that can improve geographic granularity and accuracy while also reducing respondent burden,” the release said.

]]>
https://right.report/census-to-use-satellite-imagery-to-count-new-home-builds/feed/ 0 230672
Trump Threatens to Fire Federal Employees Working From Home https://right.report/trump-threatens-to-fire-federal-employees-working-from-home/ https://right.report/trump-threatens-to-fire-federal-employees-working-from-home/#respond Tue, 17 Dec 2024 05:39:22 +0000 https://right.report/trump-threatens-to-fire-federal-employees-working-from-home/ (The Center Square) – President-elect Donald Trump blasted federal “work from home” policies Monday, calling them “ridiculous” and stirring up pushback from federal employee unions.

“If people don’t come back to work, come back into the office, they’re going to be dismissed,” Trump told reporters during a news conference at Mar-a-Lago.

The issue has been thrust to the forefront in part by the incoming Trump administration’s emphasis on government efficiency, spearheaded by Elon Musk and Vivek Ramaswamy.

But the issue has also gained national attention because Biden administration officials like outgoing Social Security Administrator Martin O’Malley negotiated a deal with union leaders to entrench the policies, keeping telework in place for his 42,000 employees until 2029.

Everett Kelley, national president of the American Federation of Government Employees, the largest federal employee union, threatened legal action against the incoming Trump administration if the president-elect tries to upend previously bargained union deals that let federal employees work from home.

“Collective bargaining agreements entered into by the federal government are binding and enforceable under the law,” Kelley said. “We trust the incoming administration will abide by their obligations to honor lawful union contracts. If they fail to do so, we will be prepared to enforce our rights.”

According to the U.S. Office of Personnel Management, there are nearly 3 million federal employees.

Kelley argued that the extent to which federal employees work from home has been exaggerated.

“Rumors of widespread federal telework and remote work are simply untrue,” Kelley said. “More than half of federal employees cannot telework at all because of the nature of their jobs, only ten percent of federal workers are remote, and those who have a hybrid arrangement spend over sixty percent of working hours in the office.”

Critics have shot back saying that effectively means that 40% of federal work hours are remote. If you remove certain workers like postal workers and maintenance workers from the equation, the percentage of federal remote work is much higher.

In particular, workers in the federal agencies in and around Washington, D.C. have largely grown accustomed to at least partially working remote.

Kelley argued the policies help the government recruit and keep “top talent.”

“Telework and remote work are tools that have helped the federal government increase productivity and efficiency, maintain continuity of operations, and increase disaster preparedness,” Kelley said in a statement Monday. “These policies also assist agencies across the government, including the Social Security Administration, in recruiting and retaining top talent.

]]>
https://right.report/trump-threatens-to-fire-federal-employees-working-from-home/feed/ 0 230378
Georgia Panel Recommends Ban on Transgender Participation in Girl’s Sports https://right.report/georgia-panel-recommends-ban-on-transgender-participation-in-girls-sports/ https://right.report/georgia-panel-recommends-ban-on-transgender-participation-in-girls-sports/#respond Mon, 16 Dec 2024 11:02:34 +0000 https://right.report/georgia-panel-recommends-ban-on-transgender-participation-in-girls-sports/ (Just The News)—A committee studying women’s sports is recommending a bill requiring Georgia’s high school and college athletes to compete based on the sex listed on their birth certificate.

Boys saying they are girls, or transgender females, would be ineligible to compete in girls sports. They could compete with boys.

The Senate Special Committee on the Protection of Women’s Sports is also asking the General Assembly to consider legislation that would require separate changing rooms also based on biological sex.

The authority to regulate transgender participation in sports would be stripped from high school athletic associations. Lt. Gov. Burt Jones said previously that the General Assembly could have addressed the issue several years ago but gave the authority to the high school athletics association.

“This is an issue that should be decided by the people’s elected representatives,” the recommendations said.

Schools that fail or refuse to abide by the rules could lose their funding, according to the recommendations.

“I recognize that there are passions on both sides of this issue and a genuine desire on both sides to move forward in a way that respects everyone,” said committee Chairman Greg Dolezal, R-Cumming, on Friday. “I hope that we can recognize that we can do two things at one time. We can both treat people respectfully but we can also have an eye towards fairness in the legislative process. And that’s I hope to do as we move forward with this.”

The Georgia High School Association requires high school athletes to compete based on the sex on their birth certificate. The Board of Regents doesn’t have a policy on transgender athletes. The regents passed a resolution in October asking the NCAA to mirror rules set by the NAIA, which requires athletes to compete based on their sex at birth.

Georgia would become the 26th state to enact laws about transgender participation in women’s sports if the Legislature passes the committee’s recommendations. The Biden administration has tried to expand Title IX to include LGBTQ+ people. Twenty-six states have sued, and the rule is tied up in court.

]]>
https://right.report/georgia-panel-recommends-ban-on-transgender-participation-in-girls-sports/feed/ 0 230300
Another Democrat flips Republican in Texas border county https://right.report/another-democrat-flips-republican-in-texas-border-county/ https://right.report/another-democrat-flips-republican-in-texas-border-county/#respond Mon, 16 Dec 2024 09:59:43 +0000 https://right.report/another-democrat-flips-republican-in-texas-border-county/ Another longtime Texas Democrat has switched parties, joining the Republican Party, this time in the border county of Webb. Webb County flipped red in November, joining other border counties that flipped red for the first time in over 100 years, The Center Square reported.

The region has been a Democratic stronghold since Texas became a state in 1836. The majority of residents and voters in south Texas are Hispanic. For the first time in Texas history, nearly all border counties voted for Donald Trump, including Webb County.

Webb County Judge Tano Tijerina this week announced he was leaving the Democratic Party, saying like many others before him that “the party left me, and the people of South Texas, behind.”

In a Facebook post, he said, “As Webb County Judge, I have fought to protect our shared values here in South Texas – hard work, faith, family, and freedom. Unfortunately, the radical National Democrat party no longer stands for these values, and I want to be a part of a party that not only stands for these values but also protects them.

“South Texas spoke loudly in the last election, with President Trump winning Webb County. Now and always, I am standing with my fellow South Texans, proudly declaring that I no longer want to be associated with the radical national Democrats. I will continue to fight for what matters most in our community in order to build a bright future for South Texas.”

In response, Gov. Greg Abbott said, “This is excellent. Democrats in South Texas are switching to the party that aligns with their values – the Republican Party. South Texas Hispanics in particular are joining the party of faith, family, freedom & common sense – the Republican Party. Welcome!”

In an interview with Fox News, Tijerina said he left the Democratic Party because over the years he saw it drift “further left, embracing policies that don’t reflect the values of our community,” adding that the “radicalization” of the party “pushed me away a long time ago.”

Tijerina highlighted issues of importance to him and his constituents.

“We need to have border security,” he said, in a county where law enforcement is participating in Abbott’s border security mission, Operation Lone Star.

A recent poll found that the majority of Hispanic Texans surveyed want illegal border crossers deported. U.S. Rep. Monica De La Cruz, a Republican from Edinburg, has long argued that President Joe Biden and the Democratic Party doesn’t understand Hispanic Texans living in border communities.

“Parents want the best for our children, but under Biden everything is more difficult at the border,” she said earlier this year. “We see the disaster that Biden has caused. At the beginning of his term, he stopped enforcing the laws and now the cartels and many criminals enter our country. … What’s humane about allowing someone to kill our people? Republicans want to stop this.”

Tijerina also took issue with the Biden administration attacking the oil and gas industry, saying, “The oil and gas industry has been threatened here in South Texas.”

The industry is leading U.S. oil and natural gas production and job creation. Major projects in south Texas include expanding the port of Brownsville for liquified natural gas exports, extensive infrastructure and other support jobs for the industry in the region, The Center Square reported.

Tijerina also pushed back against “the woke movements,” including boys playing in girls’ sports, which Hispanic Texans overwhelming oppose. The Democratic Party’s chair was forced to resign after devastating losses in November and after he argued the party went too far pushing a transgender agenda, The Center Square reported.

Multiple high-level Texas Democrats also endorsed U.S. Sen. Ted Cruz, a Houston Republican, also claiming the Democratic Party no longer represented their values. Texas border counties also overwhelmingly voted for Cruz.

Tijerina joins former state Rep. Shawn Thierry of Houston, who left the Democratic Party in August and who also said the party left her and embraced a radical, far left agenda. Thierry took a stand against a medical industry profiting off of gender mutilation of minors, voting with Republicans to ban the practice in Texas.

Last year, Dallas’s former mayor, Eric Johnson, also left the Democratic Party citing fiscal responsibility, as did State Rep. Ryan Guillen from Rio Grande City in Starr County. Starr County also flipped in November, voting for Trump, and for a Republican for the first time in 132 years.

]]>
https://right.report/another-democrat-flips-republican-in-texas-border-county/feed/ 0 230267
Arizona Republicans Introduce Florida-Style Election Reforms to Speed Results https://right.report/arizona-republicans-introduce-florida-style-election-reforms-to-speed-results/ https://right.report/arizona-republicans-introduce-florida-style-election-reforms-to-speed-results/#respond Sat, 14 Dec 2024 17:23:29 +0000 https://right.report/arizona-republicans-introduce-florida-style-election-reforms-to-speed-results/ (Just The News)—Arizona Senate President Warren Petersen is seeking election administration reforms similar to what exists in Florida in the upcoming legislative session in hopes of delivering faster results.

Senate Bill 1011 would end the drop off of mail-in ballots at 7 p.m. on the Friday prior to Election Day, which would be a major change from the drop-offs that are available until polls close on Election Day currently.

Mail-in ballots dropped off closer to Election Day, also known as “late earlies,” are often attributed to the length of time it takes to count ballots in the Grand Canyon State.

“Today me and my colleagues will be introducing legislation to get election results night of. AZ will no longer be the laughing stock of the nation and the last to announce electoral votes. The bill will incorporate the key differences between AZ and FL,” Petersen tweeted Wednesday.

In addition, the bill would require an early voting certificate to be signed by a voter as opposed to a mail affidavit envelope for those voting early in-person.

“Arizonans deserve timely and transparent election results. House Republicans will introduce legislation to move up the deadline for dropping off early ballots, ensuring counties have adequate time to process them before Election Day,” incoming state House Speaker Steve Montenegro tweeted on Wednesday.

However, some Democrats have expressed concerns that the proposed changes could hinder the ability for people to cast their ballot by limiting the drop off time frame.

“This is voter suppression plain and simple. Voters overwhelmingly support accessibility over speed of results. Let every eligible voter VOTE,” Sen.-elect Analise Ortiz, D-Phoenix, tweeted.

If the bill, which will also have a House equivalent, passes the Republican majority legislature, it will land on Democratic Gov. Katie Hobbs’ desk.

“Faster election results should not come at the expense of voters’ rights,” Christian Slater, spokesman for Hobbs, told The Center Square in a statement. “As the State’s former chief elections officer, Governor Hobbs is open to proposals to speed up the counting process, but any solution must protect Arizonans’ freedom to make their voices heard at the ballot box. She remains committed to a voting process that maintains accessibility and integrity for all Arizona voters and guarantees safe, secure and fair elections.”

The speed of results has been a focal point in Arizona in recent elections, as the state holds many elections that yield close results.

]]>
https://right.report/arizona-republicans-introduce-florida-style-election-reforms-to-speed-results/feed/ 0 230207
U.S. Credit Card Debt Rises to Average of More Than $10,000 per Household https://right.report/report-average-american-household-has-more-than-10000-in-credit-card-debt/ https://right.report/report-average-american-household-has-more-than-10000-in-credit-card-debt/#comments Mon, 09 Dec 2024 12:57:37 +0000 https://right.report/report-average-american-household-has-more-than-10000-in-credit-card-debt/ (By Carleen Johnson at The Center Square)—The average American household credit card balance as of the third quarter of 2024 was about $10,757 after adjusting for inflation, according to a new study.

The personal-finance website WalletHub on Friday released its new Credit Card Debt Study, which found that consumers added $21 billion in debt during the third quarter of 2024.

Early results for the fourth quarter of the year show preliminary data for October at a new record high for credit card debt in the month, in absolute terms.

WalletHub editor John Kiernan wrote, “Even though that third-quarter increase was 31% smaller than last year’s and total debt is just 3% above where it was last year after adjusting for inflation, we are still in fairly dangerous territory,” said Kiernan.

WalletHub writer & analyst Chip Lupo responded via email to follow up questions from The Center Square.

Those early Q4 results showing record high credit card debt for October are alarming-do we know what’s driving that at all?

“The record-high credit card debt in October 2024 reflects a 3% year-over-year increase after inflation adjustments, driven by rising interest rates, holiday spending and lingering economic pressures. While Q3 debt growth slowed compared to 2023, total debt remains high at $1.29 trillion, signaling potential challenges ahead for consumers,” said Lupo.

Has WalletHub done any analysis of how much credit card debt the average American puts on during the holidays?

“While we didn’t analyze this specifically, WalletHub found that holiday budgets this year range from just over $200 to more than $4,000, depending on factors such as income, existing debt, and cost of living,” said Lupo.

Any advice on balance transferring to avoid interest?

Transferring your credit card balance to a low or 0% APR card can be a smart way to save money and pay down debt faster. When considering a balance transfer, focus on cards offering 0% introductory APRs with promotional periods up to 21 months. Such offers significantly reduce interest payments, provided you can pay off the transferred balance before the regular APR kicks in. Remember, most cards charge a balance transfer fee of about 3%, though some will waive this fee entirely. Calculating these costs upfront is crucial to ensure the move saves money,” said Lupo.

With holiday spending in full swing, many Americans are expected to add to credit card debt before the end of the year.

“Nearly half of Americans still have debt from the holidays from last year,” said Lupo. “The fact that people are still paying off debt from last holiday season makes you wonder if they are going to fall into that trap again or are they cutting back because of last year’s debt?”

Sixty-eight percent of WalletHub respondents said Santa will be less generous this year because of inflation. And about a third said they’ll spend less on holiday shopping this year compared with 2023.

]]>
https://right.report/report-average-american-household-has-more-than-10000-in-credit-card-debt/feed/ 1 230040
Sen. Ron Johnson Threatens Legal Action to Get COVID-19 Vaccine Data https://right.report/sen-ron-johnson-threatens-legal-action-to-get-covid-19-vaccine-data/ https://right.report/sen-ron-johnson-threatens-legal-action-to-get-covid-19-vaccine-data/#respond Tue, 26 Nov 2024 14:58:39 +0000 https://right.report/sen-ron-johnson-threatens-legal-action-to-get-covid-19-vaccine-data/ (The Center Square)—U.S. Sen. Ron Johnson has threatened to issue a subpoena when he becomes chairman of the Permanent Subcommittee on Investigations if three federal health agencies continue to withhold data on the adverse health effects wrought by the COVID-19 vaccine.

In a letter addressed to the Centers for Disease Control and Prevention, the Food and Drug Administration, and the Department of Health and Human Services, Johnson demanded that the agencies preserve all records referring to the development, safety, and side effects of COVID-19 vaccines, and to produce the records without redactions by Dec. 3.

“While your agencies have largely ignored or failed to fully cooperate with my oversight efforts, I can assure you that your obstruction will soon come to an end,” Johnson wrote Tuesday. “Your agencies’ refusal to provide complete and unredacted responses and documents to my numerous oversight letters on the development and safety of the COVID-19 vaccines has hindered Congressional oversight and has jeopardized the public’s health.”

Johnson has requested full versions of three sections within a FOIA from May 2021, which the CDC so heavily redacted that no scientific data was revealed.

One of the sections revealed that then-CDC Director Rochelle Walensky received Pfizer data regarding the number of myocarditis cases associated with the vaccine, though the 14-page document is completely redacted except for the cover page.

Other data requested in full by Johnson consists of emails within the CDC, showing that officials initially planned to send out a Health Alert Network message to the public about the risk of myocarditis and pericarditis associated with the Pfizer COVID-19 vaccine. Johnson reiterated his request that the CDC release all communications and briefings regarding the decision not to issue the HAN, which he originally asked for in January.

He also demanded to see the completely redacted 17 pages of apparent COVID-19 talking points that the Biden White House sent out to the America’s top public health officials.

“What is clear from these excessive redactions, however, is a concerted effort to obscure Congress’ and the public’s understanding of your agencies’ detection of and response to COVID-19 vaccine adverse events such as myocarditis and pericarditis,” Johnson concluded. “Ultimately, despite your agencies’ awareness of the risks associated with the COVID-19 vaccines, the main talking point from these and other public health officials was uniform and entirely deceptive: the vaccines are safe and effective.”

Johnson, ranking member of the committee for a short time longer until the majority flips from Democrats to Republicans with seating of the 119th Congress, has sent more than 60 public letters to federal agencies regarding the origins and treatment of the COVID-19 virus.

His demands come as the GOP-led House Energy and Commerce Committee released a report showing the Biden administration spent $900 million promoting faulty health messaging around the COVID-19 virus and vaccines.

]]>
https://right.report/sen-ron-johnson-threatens-legal-action-to-get-covid-19-vaccine-data/feed/ 0 229621
Study: AI and Data Centers Could Drive Cost of Energy up by 70% Over 10 Years https://right.report/study-ai-and-data-centers-could-drive-cost-of-energy-up-by-70-over-10-years/ https://right.report/study-ai-and-data-centers-could-drive-cost-of-energy-up-by-70-over-10-years/#respond Tue, 26 Nov 2024 04:51:10 +0000 https://right.report/study-ai-and-data-centers-could-drive-cost-of-energy-up-by-70-over-10-years/ (The Center Square)—The average American’s energy bill could increase from 25% to 70% in the next 10 years without intervention from policymakers, according to a new study from Washington, D.C.-based think tank the Jack Kemp Foundation.

According to reports, America is facing an energy crisis, with demand for energy soaring due to the proliferation of AI and hyperscale data centers – which can use as much energy as almost 40,000 homes – the boom in advanced manufacturing, and the movement toward electrification.

Written by economist Ike Brannon, a senior fellow at the foundation, and economist Sam Wolf, the report explains partly why so many utilities and regional transmission organizations are having to get creative to meet demand.

“During the previous two decades, power demand in the United States scarcely grew as the U.S. shifted from a manufacturing to a services economy,” the authors wrote.

However, the sharp increase in demand is eating up the spare capacity in the U.S. power grid, which helps protect against brownouts and blackouts in the case of extreme weather and temporary outages by power plants. That increase contributed to a huge spike in capacity market prices at the most recent auction held by the Mid-Atlantic regional transmission organization PJM.

Prices jumped from $29 to $270 per megawatt-day “across the PJM region” and from $29 to $444 in parts of Virginia, home to more than half of the nation’s data centers, according to the study.

Aaron Ruby, a spokesperson for Dominion Energy, a major East Coast utility company and the primary utility in Virginia, vehemently disagreed with the study’s claim that prices could rise to 70% in the next decade, saying the number was “way off” for the commonwealth.

“We just released a 15-year plan forecasting residential electric bills through 2039, and they’re only projected to grow by about 2.5% a year, which is lower than normal inflation,” Ruby wrote in an email to The Center Square. “Our residential rates are among the most affordable in the country. They’re 14% below the national average.”

But the surge in power demand from data centers is projected to be so great the study’s authors argue the center cannot hold (while acknowledging that rate setting is “inherently political” and “difficult to forecast” and that it’s “unclear who will bear the cost of these price increases”).

“In Virginia, the high regulation of price and capacity has kept the increased demand from data centers from impacting prices paid by ordinary consumers, but such insulation cannot hold much longer without risking service interruptions or brownouts,” the report reads. “As data center growth expands, price increases may need to flow through to consumers more rapidly.”

In Maryland, electricity bills “are projected to increase by somewhere between two to 24% in 2025, depending on the region,” the authors added.

Other states like Georgia, Ohio, Texas, Illinois and Arizona may come to resemble Virginia in the years ahead, according to the study.

The report’s authors suggest that policymakers craft and implement policy that will make data centers part of the solution to the disproportionate demand they place on the grid, including charging them more for the energy they use.

“To ease the burden on households and small businesses, AI companies should be required to bear the additional costs of the energy they consume. This could include charging data centers higher fees to reflect their disproportionate impact on electricity markets,” the report reads.

Brannon and Wolf also recommend that states and local governments stop subsidizing data center construction, arguing that the economic benefits aren’t worth the cost to taxpayers and that utility providers start including minimum take clauses in their contracts with data centers.

“A minimum take clause guarantees a minimum payment from a utility user—such as a data center—regardless of how much energy it purchases, which provides the utility with a modicum of revenue certainty,” the authors wrote.

The study concludes with several other recommendations, saying that “paying for grid modernization… can be accommodated within existing rate structures, but only if the data centers bear their proportionate share of these costs.”

]]>
https://right.report/study-ai-and-data-centers-could-drive-cost-of-energy-up-by-70-over-10-years/feed/ 0 229590