Public power utilities, community-owned and not-for-profit, serve over 55 million Americans across roughly 2,000 communities, including major cities like Austin, Los Angeles, and Seattle. These utilities, represented by the Large Public Power Council (LPPC), are currently grappling with rapid load growth driven by data centers, artificial intelligence, and the electrification of manufacturing and transportation. This surge in demand presents unique challenges and opportunities for the sector.
Tom Falcone, president of the LPPC, emphasizes that while all power companies share the common goal of reliably delivering electricity, public power utilities are distinct in their accountability to local communities. “We’re publicly owned. We are not-for-profit. We are community oriented. We’re mission oriented,” Falcone stated on The POWER Podcast. This mission-driven approach means that public power utilities prioritize reliable, affordable, and sustainable energy at the lowest cost to customers, rather than focusing on growth or earnings.
The rapid and concentrated growth in energy demand is a significant challenge. Falcone notes that utilities are now facing requests for gigawatts (GW) of power, enough to supply hundreds of thousands of homes, a stark contrast to the megawatt (MW) requests of the past. About half of LPPC’s members are experiencing this rapid growth, with some utilities potentially doubling their load over the next decade. However, the infrastructure to meet this demand cannot be built overnight. “We have to go through the same permitting and public processes, and construction and supply chain, and it just doesn’t allow us to build quite that fast,” Falcone explained.
To address these challenges, the LPPC is advocating for changes in federal policies. Falcone suggests that the current processes for managing rapid growth, queue processes, and financing large loads need to be re-examined and streamlined. He also points to the Federal Emergency Management Agency (FEMA) as an area where improvements can be made. The FEMA Act of 2025, proposed by Chairman Graves and Ranking Member Larsen, aims to reduce long delays in grant approvals and disbursements following disasters. Falcone supports this proposal, emphasizing the need for more predictable grants and incentives for prudence and mitigation planning.
Another area of concern for the LPPC is tax-exempt bonds. Falcone explains that outdated Treasury regulations on private use limit the ability of public power utilities to enter into long-dated contracts with customers. These regulations, not designed for the current rapid growth in demand, pose increasing challenges as the build-out progresses.
The insights from Falcone’s interview highlight the unique role and accountability of public power utilities. As the sector looks ahead to the next decade, it must harness technology and innovation, invest in clean energy, and build resilience against cyber threats and extreme weather. The challenges posed by rapid load growth and outdated regulations will shape the development of the sector, driving the need for policy reforms and innovative solutions. The full interview with Falcone on The POWER Podcast offers a deeper dive into these topics and more.