Cato Podcast Free Markets for Electricity
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Jan 13, 2026 Glen Lyons, founder of Advocates for Consumer Regulated Electricity and former ExxonMobil executive, discusses the urgent need for market-based solutions in the electricity sector. He highlights the challenge posed by massive data centers on grid reliability and the outdated regulatory frameworks. The conversation delves into innovative concepts like off-grid utilities and Senator Cotton's legislation, aiming to free up electricity markets. Lyons emphasizes the potential for reform to enhance supply, protect consumers, and navigate the complexities of modern energy demands.
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Sudden Gigantic Loads Strain Grids
- Large AI and data center loads are adding sudden, massive demand lumps that utilities never planned for.
- Glen Lyons warns these rapid, concentrated loads create both cost and reliability pressures on grids.
Data Centers Demand City-Scale Power
- Data centers can request capacities comparable to entire cities, upending normal connection processes.
- Travis Fisher explains utilities face slow approval processes that clash with tech firms' speed.
Exclude True Islands From Federal Rules
- Exempt islanded, off-grid utilities from federal mandatory reliability rules if they only serve new customers.
- Glen Lyons says Senator Cotton's bill would let off-grid providers risk private money without imposing costs on others.