Shaheen Joins Colleagues in Searching for Answers About How New Regional Data Centers will Drive up Energy Costs for New England Communities
(Washington, DC) – U.S. Senator Jeanne Shaheen (D-NH) joined Senators Peter Welch (D-VT), Richard Blumenthal (D-CT), Jack Reed (D-RI), Ed Markey (D-MA) and Sheldon Whitehouse (D-RI) in leading a letter requesting answers from ISO New England President and CEO Vamsi Chadalavada about how the grid operator plans to protect residential ratepayers from data center-driven price increases.
The average residential electricity price nationally increased 13% in the first 9 months of 2025 alone. Although some cost increases are associated with updating aging infrastructure, data centers have driven steep regional demand growth, leading to higher prices both in wholesale and retail electricity markets.
The Senators wrote, in part: “As Senators representing New England, we are deeply concerned that data center growth will drive up energy costs and degrade reliability for our constituents. As the Independent System Operator New England (ISO-NE) continues with its own market reforms, it is essential that service remains affordable and reliable for residential consumers. We believe it is necessary to require tech companies, not American families, to foot the bill for their load. We request further information on the strategies that ISO-NE plans to implement to protect residential ratepayers from data center-driven price increases.”
They continued, “Forecasts suggest that, after two decades of stagnation, U.S. electricity demand could increase as much as 5.7% through 2030, a level of growth not seen since the 1960s. The share of electricity serving data centers is expected to triple from 2023 levels, accounting for 11.7% of U.S. power demand.”
“While demand is increasing, so are electricity costs. The average residential electricity price increased 13% in the first nine months of 2025 alone. Data centers are one of the key factors driving steep demand growth in certain regions, leading to higher prices both in wholesale and retail electricity markets. At PJM’s annual capacity auction in July of this year, which aims to secure resources to meet future peak demand, prices hit $329.17 per megawatt/day, a 22% increase from the 2024 auction, and a nearly 1000% increase from 2023.”
The Senators highlighted that data centers have been slow to arrive in New England, in part because the region already has high power prices, “This dramatic price increase occurred even with a negotiated price cap in place, which reduced capacity auction prices by 38%, or nearly $10 billion. Without an extension or other reforms, this cap will expire, and prices are likely to rise even further. These high prices are being passed on to households across the PJM region. New England already suffers from historically high energy prices. It is essential that our constituents do not face the same fate.”
“Rapid demand growth also threatens the reliability of the electric grid. Despite setting record prices in its capacity auction, PJM was unable to meet its planning reserve margin. ISO-NE likewise experiences a tighter reserve margin while ill-advised efforts by the Trump Administration to stall offshore wind have delayed our region’s planned addition of this reliable, clean, and affordable power generation. Should New England see an influx of data centers coming online, pressure on the margin will only worsen.”
They concluded, “ISO-NE has a central role in making sure residential ratepayers are not unjustly burdened by data center growth. As the ones who stand to benefit most, the multi-billion-dollar AI industry should be responsible for these costs. With data centers emerging across New England, how will ISO-NE work to protect residential customers from these costs? We appreciate the work that ISO New England does to operate our region’s bulk power system. We share a common goal of maintaining reliable, affordable electricity for all customers as more data centers come online.”
The full text of the letter can be found HERE.
At a time when the cost of living is a top concern, Shaheen has led the charge in Washington to protect federal programs that help Granite Staters afford their energy bills and make energy efficiency updates that save money. Due to Shaheen’s efforts, the Administration recently released federal Low Income Home Energy Assistance Program (LIHEAP) funding, which more than 57,000 Granite Staters rely on to help pay their home heating bills – providing critical assistance to families during New Hampshire winters. Shaheen has also previously condemned efforts by the Trump Administration to eliminate staff responsible for administering the LIHEAP program.
Shaheen was a key supporter of the Inflation Reduction Act and a lead negotiator of the Bipartisan Infrastructure Law, legislation that made landmark investments in energy efficiency. In the Bipartisan Infrastructure Law, Shaheen helped secure $3.5 billion in additional funding for the Weatherization Assistance Program, including $18 million for New Hampshire. Shaheen has long-championed the Weatherization Assistance Program to lower energy costs for low-income families in New Hampshire, as well as the State Energy Program, which assists states with the development of energy efficiency renewable projects. In December of last year, the New Hampshire delegation called on the Department of Energy to immediately release the remaining $9 million in funding for weatherization from the Bipartisan Infrastructure Law. In addition, Shaheen led the delegation in opposing the Environmental Protection Agency’s efforts to terminate a $43 million grant for New Hampshire to support community solar and other solar projects that would reduce residents’ utility bills by 20% or more.
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