TVPPA Joins NRECA, APPA and TVA in Support of Ratepayer Protection Pledge

In March, at the urging of the White House, seven major hyperscale AI companies signed the Ratepayer Protection Pledge (RPP), committing to principles designed to protect consumers from electricity price increases associated with the rapid growth of AI and data centers. To learn more about the pledge, see the White House fact sheet.

TVPPA joins the American Public Power Association (APPA), the National Rural Electric Cooperative Association (NRECA), and the Tennessee Valley Authority (TVA) in supporting the White House’s call for electric utilities and trade associations to endorse the pledge and its commitment to protecting Americans from electricity price increases driven by the growing energy demands of AI and data centers.

On Thursday, TVA officially signed the pledge, reinforcing its commitment to maintaining affordable, reliable electricity across the seven-state Tennessee Valley region.

TVPPA’s support reflects the work already underway between TVA and the association’s Rates and Pricing Committee to develop policies for integrating large new electric loads while protecting existing ratepayers from bearing the costs of unprecedented AI and data center growth. Those efforts include improving long-term load forecasting, funding necessary infrastructure, and establishing clear cost-allocation principles that ensure new large loads pay their fair share.

“The past few years have seen a dramatic rise in both the number of data centers seeking to connect to the grid and the power requirements of new AI-driven facilities,” said TVPPA President and CEO Doug Peters. “Data centers have grown from between one and five percent of TVA’s industrial load to approximately 18 percent today, and that demand is expected to double by 2030. This rapid growth compounds the capacity constraints we were already facing in the Valley while creating new challenges, including less predictable load forecasts, increased competition for new generation, and broader market disruption.”

“From its inception, the Tennessee Valley public power model was designed to protect consumers,” Peters continued. “That means we must manage growth responsibly. We’re encouraged that the leading hyperscale AI companies have acknowledged that responsibility by signing the Ratepayer Protection Pledge, and we’re proud to stand with TVA, APPA, and NRECA in supporting its goals.”