FirstEnergy data center contracts surge 50% in Q2

If you get electricity from FirstEnergy or one of its utilities — including Mon Power or Potomac Edison in West Virginia — a rate increase may be headed your way. FirstEnergy says data center companies have signed contracts for 6.4 gigawatts of power by 2035, up 50% from the prior quarter, with more deals expected soon. To help meet that demand, Mon Power and Potomac Edison are asking West Virginia regulators for permission to build a $2.7 billion project called the Maidsville Energy Center, made up of a large gas-fired power plant and three smaller solar farms, mostly to serve one big data center.

The catch for homeowners: Mon Power wants to add a surcharge to customer bills to help pay for construction, which the utility estimates would raise average residential rates by about 2.3%. The company says future revenue from the data center will eventually offset these costs, but a coalition of consumer and environmental groups has asked regulators to reject the surcharge, arguing the data center project is speculative and won't be fully running until 2035, two years later than originally planned.

FirstEnergy also recently signed a voluntary White House pledge meant to protect existing customers from grid costs caused by data centers, and it says any final agreement for the West Virginia plant would include long-term protections for local ratepayers. If you live in FirstEnergy's service area, particularly West Virginia, it's worth keeping an eye on how this case is decided and what it means for your monthly bill.