this post was submitted on 10 Jul 2026
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I don't really get how the fig leaf of "due to data-centers" is even supposed to work.
They get more demand, so more revenue. Then the fixed costs of the business are spread over more revenue, which is supposed to make the prices better not worse.
I know the profit motive is just extracting whatever the market will bear, but could anyone still explain the reasoning they are trying to make customers believe?
That's the neat part, they don't have to bother with that!
It let's them increase their extortionary price hike by more, and blame it on a different extortionist.
probably need to build new power plants while the existing ones are in overdrive
they could handle that diffeently, bug fleecing regular joe is more fun
Somewhere at the energy company is a person or small team responsible for that message. And those are regular people who also are getting fucked in the ass. Carefully crafted to keep their job (shifting the blame away from the utility slightly), while also letting everyone know who's dick it is in their bumbum
It can depend, also this little snippet doesn't say if it's energy or delivery. Some utilities really like expanding delivery because the projects are revenue, and they don't make much, if any, on the delivery. But in some cases those delivery expansion projects have a long payback time, so they avoid them until they're critical, and also lose if after building the demand they were serving goes down.
It also varies a ton by state (Texas being the most extreme example). As well as, someone noted below, how the energy purchase goes. In my state there's an independent not for profit that is not the utility, and not the energy producer, that just coordinates purchase of power from the broader region (across multiple states). They'll mix whats coming into the grid in the state going "call Ohio and buy XXYY megawatts for ZZ hrs from that coal fire joint". The control room is cool as hell. They seem pretty ethically clean, but purchasing that power is a bidding process (like, real time), and your bid has to be competitive.