Odd Lots Travis Kavulla Explains Why Electric Bills Shot Up
151 snips
Dec 1, 2025 
Travis Kavulla, vice president of regulatory affairs at NRG and a former commissioner in Montana, dives into the complexities of the rising electricity costs. He explains how the pandemic has reshaped demand, particularly from data centers, and discusses the challenges the grid faces with increased loads. Travis also distinguishes between commodity and grid charges, shares insights on the patchwork of U.S. regulations, and highlights potential solutions like demand-side flexibility. He emphasizes the necessity for innovative regulatory approaches to prepare for future demands.
AI Snips
Chapters
Transcript
Episode notes
Transmission Costs Climb Faster Than Power Prices
- Transmission costs can rise much faster than commodity prices and have increased dramatically in some regions over decades.
- Both commodity and grid charges land on consumer bills but require different regulatory solutions.
What Electricity Competition Actually Means
- Competitive electricity means generation and retail can be opened to market bidding while wires remain regulated.
- Retailers can offer fixed-price products to insulate customers from wholesale volatility.
Restructuring Came From Bad Investment Bets
- Travis recalls regulators moved to prevent utilities from shifting bad investment bets onto captive customers.
- That led some states to require generation be provided by competitive investors instead of ratebase-funded utilities.