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Data Centers Help Keep Your Bills Affordable

What Our Customers Need to Know

  • Data centers pay the full cost to connect to the grid, including new infrastructure built to serve them.
  • All customers benefit from the grid costs paid by data centers. Because they bring steady demand and funding over time, the costs of running the system are shared among more customers — reducing pressure on everyone's bills.
  • Your rates may still change over time, typically driven by fuel costs, grid upgrades and broader energy market factors.

How This Benefits You

Helps Keep Bills More Affordable Over Time
More customers sharing grid costs means lower and less frequent price increases without compromising reliability.
Strengthens Reliability in Your Area
New infrastructure built for large customers, including data centers, also improves your service.
Supports a More Modern Grid
Investments tied to large customers help expand and improve the system to serve new homes and businesses and replace aging equipment.

How You Are Protected

Data centers pay their share, upfront and over time. You are not on the hook if a project changes or leaves — our contracts require upfront financial guarantees and long-term payment commitments even if usage drops.

Safeguards to protect our customers:

  • Large customers pay their share of infrastructure costs, helping keep rates fair for all SWEPCO customers.
  • Agreements with large load customers ensure funding for grid upgrades like substations and lines that support service reliability for homes and businesses.
  • The Public Service Commissions of Arkansas, Louisiana and Texas (APSC, LPSC, PUCT) review and approve any rate changes to help ensure they are fair, just and reasonable.

Bottom Line

  • Data centers pay for new infrastructure and upgrades needed to serve them.
  • They can help reduce how fast rates might otherwise increase.
  • And they help fund a stronger, more reliable grid that benefits you.

FAQs

No, data centers are required to pay the costs tied to their service, including for infrastructure built for them, so those costs are not put on other customers. As with any electric bill, prices can still change over time because of things like fuel costs and the broader energy market as well as equipment replacements and upgrades that benefit the whole system.
We have a duty to serve all customers and we're actively working alongside community partners to help our communities thrive. These projects can bring jobs, support local growth and pay for infrastructure we all rely on for everyday needs.
Yes, we plan ahead so we can keep delivering reliable service as demand for power grows. Our goal is to be ready for the future while continuing to meet existing power needs at a reasonable cost.

The Kentucky PSC has previously approved a set of protections specifically for large-load customers (150 MW or more). These protections are designed to shield existing Kentucky Power customers from financial risk and are not imposed on any other Kentucky Power customer except the large-load customer, including TeraWulf, owner and operator of Muskie Data Center planned in Boyd County's EastPark Industrial Park.

Kentucky Power is committed to providing transparency on how agreements with large-load customers are managed and to provide understanding on the safeguards in place to protect other customers. For details about the Muskie Data Center, customers can review the following:

For additional questions about the tariff or large-load electrical service, customers can contact us at info@kentuckypower.com.

Maintaining A Reliable Supply

Our Integrated Resource Plan (IRP) ensures customers pay only for prudent investments and is updated regularly to maintain a balanced, reliable supply of energy.

View our IRP

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