Chelan PUD weighs new framework for data center power demands

WENATCHEE — Chelan County Public Utility District is considering new approaches to meet growing electricity demand from data centers while protecting existing customers.

The utility's commissioners evaluated a framework for handling requests from large power users, primarily data centers, which are seeking potential sites in the area. Under the proposed guidelines, any new arrangements would need to have a neutral-to-positive impact on other customers and maintain reliability and stable rates.

The framework would allow Chelan PUD to serve large customers through short-term market purchases, customer-procured power, or negotiated contracts potentially involving the utility's hydroelectric generation.

Microsoft is already constructing a data center in the county's Malaga area. Officials said a typical large data center could more than double the existing electricity load in Chelan PUD's service territory.

The proposals come as data center power demand is surging nationwide. Industry forecasts predict over 40 gigawatts of new data center load in the U.S. by 2030, twice current levels, driven partly by artificial intelligence growth.

Chelan PUD is seeking public comment on the framework through August 1. Commissioners may consider a proposed service agreement with Microsoft as soon as September.

Chelan PUD invites the public to submit comments and questions to customeroutreach@chelanpud.org. Comments will be reviewed at the Aug. 5 commission meeting.

In other business, the utility reported overall customer satisfaction increased to 90.3% in its latest survey, up from 87.9% in 2022. Customers cited reliable service and low rates as key drivers of satisfaction.