Advanced Electric Rate Design rulemaking
Party representing distributed energy interests. Opening comments filed on the OIR, arguing that rate design must protect rooftop solar economics and hold data centers to the same cost causation standard.
Energy litigation & regulatory advocacy · Western states & Hawai‘i
For people and planet.
Grid Justice Law represents ratepayers, communities and clean energy advocates before utility commissions, lawmakers and courts. We fight to keep AI data centers and utility overreach from pushing their costs onto households and small businesses, and to open the grid to rooftop solar, storage and community microgrids.
Rate affordability
Electricity has become one of the fastest-rising costs for western households. The increases come from choices regulators make: what utilities may build, how much they may earn on it, and who pays. Different choices can bring bills down.
California’s three big utilities, compared with inflation over the same period
Source: Cal Advocates, Q4 2024 Electric Rates Report (Jan. 2015 – Feb. 2025)
Share of recent California rate growth, by cause
Require clean, self-supplied power and dedicated large-load tariffs, so the next wave of grid spending isn’t added to household bills.
Large-load tariffs, BYOG conditions, stranded-asset protectionBefore ratepayers fund undergrounding or new transmission, commissions should compare it with microgrids, storage and local solar that can do the job for less.
Alternatives analysis in wildfire and transmission plansBatteries and local resources cut peak demand and defer grid upgrades. Our modeling finds that about 50 GW of storage in California by 2035 could lower average rates by roughly a third.
Grid Justice Law analysis, Nov. 2025 (projection)Challenge authorized returns that exceed what investors need, and finance suitable infrastructure through lower-cost public tools.
Cost of capital and general rate case interventionOppose high fixed charges and export cuts that punish customers who conserve, add solar or share it with renters.
Rate design, net metering, community solarExpand bill assistance, stop shutoffs for families in arrears, and open clean energy programs to renters and low-income customers.
Low-income programs, energy burden, consumer protectionAsk your utility whether you qualify for CARE or FERA discounts, and get quotes for solar with battery storage to see what it would save your household.
Rate cases are open to public participation, and California pays intervenor compensation to eligible parties. We can help you take part.
AI data centers
A single hyperscale AI campus can draw as much power as a mid-sized city, around the clock. Utilities are racing to build the plants and power lines to serve them. Under today’s rules, much of that cost can be spread across every customer’s bill, and households keep paying even if the data center never shows up or leaves early.
Hundreds of megawatts per site, often on aggressive timelines and with forecasts that may never materialize.
New generation, substations and transmission, plus higher prices in capacity markets as demand tightens supply.
Infrastructure enters the rate base and earns the utility a return for decades, recovered from all customer classes.
If the load shrinks, moves or never arrives, the stranded assets stay on household and small business bills.
Jump in PJM capacity prices in one auction, from $28.92 to $269.92 per MW-day. Total cost rose from $2.2 billion to $14.7 billion, driven largely by projected data center demand.
PJM 2025/26 Base Residual AuctionAdded to a typical Virginia household’s monthly bill by 2040 from the generation and transmission needed for data center growth.
Virginia JLARC, Data Centers in Virginia (2024)Of new data center load seeking service from PG&E alone, roughly the output of ten large nuclear reactors.
PG&E large-load pipeline, 2025The fix: Bring Your Own Generation
Clean BYOG means data centers supply their own power from clean, additional resources, and stay ratepayer-neutral for anything they still draw from the grid.
It applies cost causation to the biggest new loads on the grid. The companies profiting from AI pay for the power it uses, instead of families and small businesses.
On-site or contracted generation and storage that is additional to the grid, not a claim on resources other customers already pay for.
A separate customer class that pays the full cost of any grid service, upgrade or backup power it uses.
Long-term contracts, minimum bills, collateral and exit fees, so households never inherit the cost of an abandoned campus.
Data centers curtail or switch to their own supply first during grid shortages, before any household loses power.
Special contracts and cost allocations filed in public dockets, open to review by ratepayer advocates.
Why it has to be clean. Without that requirement, “bring your own generation” can mean private gas plants that sidestep state renewable standards, as Nevada regulators allowed in 2026. Clean BYOG protects ratepayers and the climate at the same time.
The principle behind every case
Cost causation is basic utility law: whoever causes a cost should pay for it. Regulators already enforce it hard against families with rooftop solar. Our work is making them apply the same standard to the largest new loads on the grid.
Same principle. Same rules. No exemptions for Big Tech.
Practice areas
Utility commission proceedings, writs and appeals, legislation and local ordinances, across California, Hawai‘i and the western states.
Large-load tariffs, special contracts, cost allocation, conditions of approval
Utilities across the West are planning gigawatts of new generation and transmission to serve AI data centers. Unless regulators act, the bill for that buildout lands on everyone else.
We advocate for clean BYOG: data centers supply their own power through clean, additional, ratepayer-neutral resources, and pay the full cost of any grid service they still need. Minnesota’s HF 16, with dedicated tariffs, cost-shift prohibitions and stranded-asset protections, is the model to beat.
Rate design, revenue requirements, fixed charges, energy burden
Residential rates in California have risen far faster than inflation, and Hawai‘i pays the highest rates in the country. Wildfire spending, transmission buildout and guaranteed utility returns drive most of the increase.
We press commissions to compare every major spending program against lower-cost distributed alternatives, and to design rates that don’t punish the customers who conserve and self-generate.
Net metering, Rule 21, hosting capacity, upgrade cost sharing
California’s NEM 3.0 decision cut export compensation by roughly three quarters, and the rooftop solar market contracted sharply. Customers who try to connect solar and storage still face long delays, shifting technical requirements and upgrade charges that utility projects don’t.
We build the factual record to challenge that unequal treatment, now under the stronger judicial review available after Center for Biological Diversity v. CPUC (2025).
Community microgrids, PSPS alternatives, distribution planning
Undergrounding lines through fire country costs millions of dollars per mile. Solar-and-storage microgrids can protect remote communities at a fraction of that cost, and keep the lights on during shutoffs.
Projects such as PG&E’s Briceburg remote grid and the Blue Lake Rancheria microgrid show it works. We push planners to weigh these options before ratepayers fund the most expensive one.
Island self-sufficiency, DER access, agrivoltaics
Hawai‘i imports roughly 90 percent of its energy and 90 percent of its food. One shipping disruption can threaten both. Rooftop solar, storage, community microgrids and farms that make their own power are the path to resilience.
We bring lessons from California proceedings to the Hawai‘i PUC and county councils, including the current debate over large AI data centers on the Big Island.
Atmospheric public trust doctrine, agency inaction
States hold the air, water and climate in trust for the public. When agencies decline to act on data center emissions, water use or grid impacts, the public trust doctrine can supply the obligation to act.
We develop these theories alongside cost causation and affordability claims, so each case rests on more than one leg.
For co-counsel, communities and local governments
Most data center fights split into land-use litigation and utility regulation, and few lawyers work both. We bridge the two.
Energy, emissions, backup-generator and grid-reliability arguments, expert coordination, and remedies such as clean-power conditions.
land-use litigators, environmental NGOsLarge-load tariffs, rate cases, resource plans and special contracts, with intervenor compensation where the state provides it.
community coalitions, cities, countiesCost-shift analyses, declarations, comment letters, model ordinances and conditions of approval.
litigators, councils drafting ordinancesApplications for rehearing and writ petitions framed for independent judicial review of commission statutory interpretation.
any party appealing a commission decisionTerms for 100% renewable supply, recycled cooling water and community benefit funds.
plaintiffs negotiating with developersBill analysis and drafting for BYOG, ratepayer protection and intervenor compensation statutes.
legislators, advocacy coalitionsOn the docket
We appear as a party in proceedings where the rules for who pays are being written.
Party representing distributed energy interests. Opening comments filed on the OIR, arguing that rate design must protect rooftop solar economics and hold data centers to the same cost causation standard.
On behalf of the Green Power Institute, challenging compensation decisions that undervalue the work of public interest intervenors, starting with the microgrids proceeding (R.19-09-009).
We will publish a response analysis when the Commission releases its report.
Tam Hunt has spent his career on the side of distributed energy and the people who pay the bills. He has worked for years before the California Public Utilities Commission on interconnection, net metering, microgrids and cost allocation, including long work with the Green Power Institute.
He is the author of Solar: Why Our Energy Future Is So Bright, has written on AI safety for Scientific American, and serves on the board of the Hawai‘i EV Association.
Grid Justice Law is small by design. Research, docket tracking and first drafts are supported by AI tools under attorney supervision, which keeps costs low for public interest clients. Every filing is reviewed and signed by counsel.
Contact
Tell us about the proceeding or the project. Please don’t send confidential details until we’ve confirmed there’s no conflict.