Cybersecurity

While the primary fear is a physical blackout, modern cyber threats to our utility are multifaceted. Our adversaries (both criminal and state-sponsored) never rest. Beyond operational outages, we are the custodians of sensitive member information. We are only as secure as our weakest vendor. We scrutinize every software update and hardware component entering our network. Protecting personal and financial data is as critical to our trust-based mission as keeping the lights on.

We do not view cybersecurity as a “one-and-done” expense, but as a core operational requirement. We can never rest on our laurels because the technology used to attack us is evolving faster than ever. Artificial Intelligence has shifted the paradigm. AI allows bad actors to automate phishing at scale, create deepfake audio of executives to authorize transfers, and find software vulnerabilities in seconds that used to take months. To counter AI-driven attacks, we will continue to invest to safeguard our system.

The bottom line is that in the modern era, operational excellence is inseparable from cyber excellence. Our commitment to the membership is to ensure that as the bar for security rises, our investment, expertise, and vigilance rise to meet it. We are not just managing a grid; we are defending a digital frontier.

Data Centers

It seems you cannot read the daily news without some reference to data centers. Public concerns often stem from outdated data. Like technology itself, data center issues are changing rapidly and what was relevant a year ago is now obsolete. Below are some issues that dominate data center headlines:

Water
• Closed-Loop Systems (The New Standard): Most new data centers utilize closed-loop liquid cooling. In these systems, water (or a coolant) recirculates indefinitely within sealed pipes. Aside from initial fill and minor “make-up” water for occasional maintenance, these facilities consume almost zero water.
• Evaporative Cooling (Legacy/Hybrid): Older or open-loop facilities use evaporation to reject heat. While this is highly energy-efficient, it does consume water. Many operators are now retrofitting these or using adiabatic cooling, which only uses water evaporation on the hottest days of the year, staying dry the rest of the time.
• Alternative Water Sources: Leading operators are increasingly using reclaimed or “purple pipe” wastewater for cooling, ensuring they do not compete with the local community for potable drinking water.

Ratepayer Protection
A significant shift in federal policy (March 2026) has addressed the cost-shifting concern—the idea that everyday residents might pay for the infrastructure needed by big tech.
• The Presidential Directive: Under the Ratepayer Protection Pledge, major hyperscalers (including Amazon, Google, Meta, and Microsoft) have committed to a “Build, Bring, or Buy” framework.
• Self-Funded Generation: Data center owners are now expected to fund 100% of the new electricity generation required for their facilities. This means they must either build their own on-site power (often small modular reactors or large-scale renewables) or sign long-term contracts that trigger the construction of new external plants.
• Infrastructure Costs: The pledge ensures that tech companies, not utility customers, cover the cost of transmission upgrades and grid interconnections required to serve their massive loads.

Efficiency Gains and Grid Flexibility
While the sheer volume of power needed is high, the efficiency per unit of compute has skyrocketed and will continue to do so. Data center owners have an incentive to lower their energy costs:
• Energy Density: AI-driven data centers are moving toward direct-to-chip liquid cooling, which is significantly more energy-efficient than traditional air conditioning.
• Load as an Asset: Modern data centers are becoming grid interactive. They can throttle their power usage during peak demand (like a heatwave) to help stabilize the grid, acting as a massive virtual power plant that prevents blackouts for residential customers.
• The DATA Act of 2026: Proposed legislation is further encouraging this by creating pathways for data centers to go entirely off grid, using captive power sources that bypass the traditional utility queue entirely.

In my view, most new data centers will be built closer to high population areas. Texas (close to energy supplies) and Virginia (federal government) lead the nation in data center construction. While rural areas are desirable due to cheap and available land, grid connectivity (which can take years), the ability to produce the needed power onsite, and local opposition are major barriers.