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Electricity Rate Designs for Large Loads: Evolving Practices and Opportunities 2026 Update

Creative Commons 'BY-NC-ND' version 4.0 license
Abstract

Electricity demand from large-load customers such as data centers is projected to grow significantly in the near term. While these large loads play an important role in advancing technology innovation and economic growth in the United States, meeting their energy needs requires utilities and regulators to consider important operational and financial risks, such as insufficient energy supply or underutilized investments, that can impact all customers. This paper builds on similar research published in January 2025 (https://emp.lbl.gov/publications/electricity-rate-designs-large-loads), providing an overview of how utilities and regulators are managing these risks through different tariffs, including rate structures and electric service agreements. Regulators, utilities, customers, and other stakeholders can use this paper as a foundation when discussing issues and sharing perspectives on developing or reviewing large-load tariffs.

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