The rapid expansion of Artificial Intelligence (AI) and cloud computing is driving unprecedented growth in actual and especially projected electricity demand, primarily due to hyperscale data centers operated by major technology firms. As utilities spend billions of dollars building infrastructure to service these data centers, it is important that an unjust financial obligation is not imposed upon residential ratepayers and small businesses. For additional context on this issue, I interviewed Kent Chandler. Chandler served as Executive Director and, later, as Chairman of the Kentucky Public Service Commission. Before that, he served as the assistant attorney general in the Kentucky Office of Rate Intervention, where he advocated on behalf of consumers on energy and utility issues before local, state, and federal agencies. He is currently a resident senior fellow in energy and environmental policy at the R Street Institute and will be a guest lecturer at the Harris School of Public Policy in Spring 2025.

In the interview, Chandler and I discuss topics such as the historical precedents of United States’ electricity demand, grid reliability, the role of energy efficiency, balancing economic development with a fair cost allocation, the role of the Federal Energy Regulatory Commission (FERC), and finally, Chandler’s advice to future Commissioners of the Kentucky Public Service Commission.