
The DSR Network AI, Energy and Climate: Power Prices, Data Centers and the Bipartisan PJM Agreement: Peter Fox-Penner
Jan 21, 2026
In this engaging discussion, Peter Fox-Penner, an expert in electricity markets and former Brattle Group chair, dives into the complexities of rising power prices in the U.S. He explores the impact of data centers on electricity demand and discusses the bipartisan agreement concerning the PJM region. Peter highlights the interplay between natural gas volatility, extreme weather, and infrastructure challenges. The conversation also touches on the potential of renewables to decarbonize and lower long-term costs, alongside the uncertainties brought by AI in future energy consumption.
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Recent Electricity Price Surge
- U.S. electricity prices rose about 19% over the last four years and outpaced most household costs since 2019.
- Natural gas and extreme weather are major drivers pushing those increases higher.
Coastal And Midwest Price Hotspots
- Price increases vary regionally with coastal and some Midwestern states seeing the largest jumps.
- Interior states mostly saw nominal rises that did not exceed inflation until recently.
Why Prices Rose And Renewables' Role
- Multiple drivers explain higher power prices: natural gas price swings, extreme weather, transmission and replacement costs.
- Market-procured wind and solar have lowered prices, contrary to some criticism.





