Read the full letter here.
In response to the Congressional AI and Energy Working Group’s March 2025 Request for Information, the Electric Power Supply Association (EPSA) submitted a letter highlighting key actions needed to ensure a reliable, affordable, and sustainable power supply as electricity demand surges, driven by AI, data centers, electrification, and domestic manufacturing.
The Working Group was created by U.S. Congresswoman Julie Fedorchak (R-ND) in February 2025.
Competitive procurement of power generation resources can help protect consumers from investment risk and unnecessary costs amid uncertainty.
EPSA encourages Congress to maintain regulatory stability, strengthen competitive electricity markets, and take swift action on permitting reform to meet the energy demands of AI, electrification, and economic growth.
EPSA’s comments focus on:
- The value of competitive electricity markets to drive efficient investment and protect consumers.
- The urgency of permitting reform to accelerate new power generation and infrastructure, including natural gas pipelines.
- Support for co-location agreements between data centers and generators to meet demand without shifting risk to ratepayers.
- The need for policy certainty to enable long-term investment, especially for flexible, dispatchable generation.
- Ongoing commitment to cybersecurity and grid protection through enforceable NERC reliability standards.
Key Points:
1. Competitive Markets Are Essential
- Competitive wholesale electricity markets are the most efficient way to meet rising demand and attract investment.
- These markets reduce risk to ratepayers by placing investment risk on developers, not consumers.
- EPSA urges Congress to support these markets through regulatory oversight and policy stability.
2. Investment Needs and Uncertainty
- Demand is rising but uncertain in scale and timing.
- Policy and regulatory consistency is critical to attracting needed investment in generation and grid infrastructure.
3. Permitting Reform Is Urgent
- Delays in permitting and siting are a major obstacle to timely energy infrastructure development.
- EPSA supports reforms that set clear timelines and limit legal process delays without compromising environmental standards.
- EPSA highlights the need to streamline natural gas pipeline permitting to support grid reliability.
4. Support Co-Location Agreements
- Co-location of data centers with generation facilities is a promising solution.
- These agreements allow tailored energy solutions without burdening ratepayers.
- EPSA urges FERC to clarify regulatory frameworks to encourage more co-location partnerships.
5. Need for Policy Certainty
- Investment is discouraged by frequent policy swings.
- EPSA calls for durable, bipartisan legislation over volatile administrative rulemaking.
- EPSA expresses concern with recent EPA rules that undermine natural gas generation development.
6. Cyber and Physical Security
- EPSA supports the role of NERC and FERC in maintaining enforceable security standards for the grid.
- The organization calls for Congress to ensure these entities have the tools and resources to keep pace with evolving threats.
