Who Pays For Data Center Power, and 9 other huge stories on the Energy News Beat Stand Up

Data centers are powering the AI revolution—but who's paying the bill? In this episode of Energy News Beat, host Stu Turley digs into a $29.4 billion question that's about to hit your electricity bill. Federal regulators just rejected most of PJM's plan to make data centers bring their own power, and the consequences are staggering. Your electric bill could jump by $26.87 in June 2025, and that's just the beginning. With capacity costs skyrocketing 46% over four auctions, Americans are waking up to a hard truth: energy dominance doesn't mean anything if grandma in Ohio can't keep the lights on at a fair price. In this episode, we break down the data center crisis, explore why the U.S. is losing refinery capacity at an alarming rate, examine the geopolitical stakes of the Russia-Ukraine diesel deal, and ask the tough questions about America's energy future. Buckle up—this is the energy story nobody's talking about, and it's already on your power bill.

1. Data Center Power Costs & Grid Impact (Primary Focus)

The host extensively covers the controversial $29.4 billion question of who pays for data center capacity on the PJM grid. Key points include:

• FERC rejected most of PJM's plan to require data centers to bring their own power
• Data center loads added 29.4 billion to capacity costs across four auctions (46% of total costs)
• Electricity bills are rising significantly (e.g., $26.87 increase in New Jersey in June 2025)
• Public opinion: 84% concerned about data center impact on energy prices; 73% support requiring data centers to bring their own power
• The host advocates for "BYOP" (Bring Your Own Power) as the solution

2. China's Oil Market Activity & Inventory

Discussion of Chinese refiners slowing inventory drawdowns and increasing oil purchases:

• China buying more seaborne crude (approaching 12 million barrels per day)
• Sourcing from Malaysia and Singapore due to cheaper tanker rates
• Implications for global oil markets

3. Hurricane Impact on Gulf Oil & Gas Operations

Response to recent hurricane disruptions:

• 1.46 million barrels per day shut in (71% of Gulf output)
• 1.26 million cubic feet per day of natural gas shut in (59%)
• Personnel evacuated from 129 of 371 platforms
• Refineries faced less disruption than expected

4. Russia-Ukraine Diesel Deal & Sanctions

Trump administration's energy ceasefire and Russian diesel imports:

• Controversy over whether the deal breaks 2020 law
• Diesel prices up 71% since announcement
• Discussion of sanctions hypocrisy (EU buying from Russia during war)
• Host advocates for ending the war and changing Ukrainian leadership

5. California's High-Speed Rail Crisis

Budget and timeline failures of the bullet train project:

• Funding gap and hidden timelines
• Bakersfield segment reduced from 171 to 162 miles, budgeted at $35.7 billion
• Comparison to Morocco's successful bullet train project
• Criticism of regulatory overreach

6. Saudi Arabia & Houthi Attacks

Energy security in the Middle East:

• Trump joining Saudi campaign against Houthis
• Saudi pipeline attacks and rapid rebuilds
• Saudi Arabia's role in maintaining oil market stability

7. U.S. Refining Capacity Crisis

Long-term energy infrastructure challenges:

• U.S. lost 54% of red state refineries (from 300 to 130 total)
• Blue states lost 64% of refineries due to net zero policies
• Texas and Louisiana hold 50% of total refining capacity
• Call for using Defense Production Act to expand refineries

8. Strategic Energy Independence

Broader themes throughout:

• Importance of electrical generation for energy dominance
• Need for nuclear energy expansion
• Backup power and preparedness for consumers
• Criticism of net zero policies as wealth transfer

1.FERC Rejects Most of PJM’s Data Center Plan, and the $29.4 Billion Question of Who Pays Is Still Open

2.Trump’s Diesel Deal With Putin Runs Into The Ban Congress Passed On Russian Energy

3.Chinese Refiners to Slow Inventory Drawdowns as Imports Pick Up: What It Means for the Oil Market

4.U.S. Gulf of America Oil and Gas Activities in Response to Hurricane Isaias

5.Trump’s Energy Truce Hinges on Russian Refineries, and Seven Senators Say the Diesel Deal Defies a 2022 Law

6.California’s Bullet Train Faces a Cash Cliff by December 2027 — While Morocco’s French-Built Line Runs On Time and Under Budget

7.Trump Weighs Joining Saudi Campaign Against Houthis After Deadly Riyadh Airport Attack; Kingdom Targets 10 Million BPD Pipeline Capacity

8.Energy Department Authorizes Limited SPR Exchange Amid Hurricane Disruptions as Reserve Hits 1980s Lows

9.Is Geologic Thermal Energy Storage (GeoTES) the Holy Grail of Energy for Data Centers?

10.Should the Trump Administration Use the Defense Production Act to Expand Refineries and Pipelines?

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At The Intersection of Energy and Finance - By Sandstone Group

By Stu Turley

A shout-out to Steve Reese and the Reese Energy Consulting group for sponsoring the Podcast https://reeseenergyconsulting.com/.

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