Google defends sharing the cost of grid upgrades with broad regional benefits
Google LLCCompany submission to the California Independent System Operator
In comments to CAISO, Google supports paying for direct interconnection facilities and upgrades driven exclusively by its site. It argues that upgrades benefiting the wider region should continue to be paid through regional rates.
“Google encourages the PTOs to ensure that cost allocation ensures that upgrades that provide broad system benefits must remain appropriately socialized and shared, rather than directly assigned.”
Original text
Other statements by Google LLC in this case
- Google's Marsden Hanna says Google is committed to paying the incremental grid costs of its data centersEarlier: Defended or excused
- Google says it pays for any new infrastructure costs directly driven by its growthEarlier: Defended or excused
- Google objects to cost-shifting risks in MISO fast-track proposalLater: Condemned
Where this statement fits
Should Google have to pay the full cost of shared grid upgrades its data centers trigger?
On January 12, 2026, Google told Senators Elizabeth Warren, Chris Van Hollen and Richard Blumenthal that it pays for all the electricity its data centers use and that it, not local residents, pays for new grid infrastructure required for its growth. On January 22, Warren said that paying an electricity bill is different from fully covering the infrastructure upgrade costs of Google's data centers. An October 2026 report by the three senators said the companies, including Google, commit to paying for infrastructure that serves only their facilities but not the full cost of wider network upgrades. In June 2026, testimony filed for Google in a Virginia utility case recommended letting large customers voluntarily pay the full upfront cost of the substations that serve them. On July 31, Virginia regulators ordered Dominion Energy to develop a policy assigning data centers the cost of the transmission that connects them, and Appalachian Power says revenue from Google's new load in Botetourt County will cover $264 million in upgrades. The dispute is over whether Google should pay the full cost of the shared grid upgrades its data centers trigger, rather than leaving part of that cost with other customers.
Source and context
Original text
About this source
Google supports direct payment for facility-specific upgrades while defending shared recovery of network upgrades that benefit the wider region.
Archived copy (opens in a new tab)Before the quotation
Google describes its own electricity payments and supports ratepayer protections based on cost causation.
After the quotation
Its recommendations assign direct facilities and exclusively driven local upgrades to the customer, while keeping regional-benefit upgrades in shared transmission rates.
How this statement is classified
The label describes this statement's response within the context above.
Why this label?
The reference point is charging other customers for grid upgrades serving data centers. Google defends sharing costs when an upgrade benefits the wider system, while accepting responsibility for facilities serving only its site.
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More from this case
Read the full caseWarren and colleagues challenge shared-cost shifting
“But data center developers have refused to commit to shouldering the full costs of wider network upgrades incurred due to their data centers. Put another way, the companies commit to paying for infrastructure that solely benefits them, but dispute how much they should pay for shared infrastructure that is paid for by all ratepayers but was only built to accommodate the data center.”Read statement
Appalachian Power says other customers are not expected to pay for the $264 million in grid upgrades for Google's Botetourt data center
Appalachian Power
“In this case, the project adds a large new customer load, which is expected to bring in enough additional revenue to cover the cost of the transmission line and substation upgrades. Because the added revenue is expected to offset those costs, other customers are not expected to pay more because of this work”Read statement
Data Center Coalition says data centers are already picking up more of the cost of transmission
Data Center Coalition
“This order will continue and likely accelerate the recent trend of large users like data centers picking up more of the cost for transmission infrastructure while the share of costs borne by residential ratepayers continues to decline”Read statement
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The Dispute Index. "Google defends sharing the cost of grid upgrades with broad regional benefits". First published: 2026-10-31. Last updated: 2026-10-31. https://disputeindex.com/events/7573-in-comments-to-caiso-google-supports-paying-for