AI Revolution: Will It Boost Electric Bills?

Published Date : 3/10/2025 

Consumer advocates are raising concerns that the energy-intensive nature of artificial intelligence could result in higher utility bills for everyday consumers. 

SAN FRANCISCO (KGO) -- With the AI revolution in full swing, there's growing concern that the massive amount of energy required to power AI data centers could be passed on to consumers in the form of higher electric bills.

Consumer Watchdog President Jamie Court spoke candidly about the growing costs of powering artificial intelligence. “This is happening all across the country, and the little guy is getting the short end of the stick,” Court said.

AI's enormous energy demand is primarily driven by the way it processes data. Tech expert Ahmed Banafa explains that AI algorithms run billions of calculations simultaneously. “The difference between what we use for AI and what we use for our regular computers is that AI is running everything at the same time,” Banafa said.

PG&E acknowledges that electric bills are increasing for customers across the country but points out that their average bills are expected to decrease this year and next. This decrease is partly due to the removal of temporary costs that had been present in bills over the past few years.

“We've completed a number of projects to increase our wildfire safety and respond to emergencies,” said PG&E spokesperson Paul Doherty. PG&E aims to keep power bills either stable or decreasing for their customers in the coming years, even with the increasing demand from more data centers.

However, achieving this goal depends on several factors. “We're in a unique position here in California in that we have a grid that is underutilized. So if we can increase the utilization rate, we see an opportunity to help put downward pressure on rates,” Doherty added.

Consumer advocates like Court remain skeptical about the stability of utility bills. “The fact is, it increases our energy demand needs. And that makes us do things like have to build more transmission lines, have to get in touch with more generation, go to a western regional grid. Those things are going to cost money,” Court said.

The debate over the impact of AI on energy consumption and utility costs is ongoing, and the outcomes will depend on how effectively utilities and policymakers can manage the growing demand. 

Frequently Asked Questions (FAQS): 

Q: What is the main concern regarding AI and electric bills?

A: The main concern is that the significant amount of energy required to power AI data centers could lead to higher electric bills for consumers.

Q: How does AI processing differ from regular computing?

A: AI processing involves running billions of calculations simultaneously, which is much more energy-intensive compared to regular computing tasks.

Q: What steps is PG&E taking to manage increasing energy demand?

A: PG&E is working on increasing the utilization rate of the underutilized California grid and completing projects to enhance wildfire safety and emergency response.

Q: Why are consumer advocates skeptical about stable utility bills?

A: Consumer advocates are concerned that the increased energy demand from AI will necessitate additional infrastructure, such as more transmission lines and generation facilities, which could lead to higher costs.

Q: What is the current trend in electric bills according to PG&E?

A: According to PG&E, average bills are expected to decrease this year and next due to the removal of temporary costs from previous years. 

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