im not feeling so good about AI and data center journalism right now. these headlines are very shocking! so i clicked through.
for background: Lake Tahoe residents live in California and get their energy from Liberty Utilities, a California energy provider. Liberty Utilities gets 75% of its energy from NV Energy, a Nevada energy provider with the power lines and energy going to Lake Tahoe. NV Energy has a contract to stop supplying energy to Liberty once a new transmission line is built that can serve Tahoe.
based on the headlines you'd never guess that
the energy supplier NV Energy already sold its CA assets to CA-based Liberty Utilities in 2009 and told them to find their own energy provider within five years
Liberty Utilities did not do that (it's hard and costly and they're a small provider!) so NV Energy granted temporary extensions in 2015, 2020, and 2025
Liberty Utilities is struggling and having to raise energy prices because fire insurance has gone through the roof. CA has a Wildfire Fund that helps energy providers with this, but Liberty Utilities isn't covered by it
NV Energy is building new transmission lines that should give Liberty Utilities access to energy from other providers
NV Energy will continue providing energy to Liberty Utilities until the new transmission lines are finished
so the headline is insanely misleading rage bait. a Nevada energy supplier is finally ending their 16 years of temporary energy service to Tahoe residents in California because the infrastructure for letting a different provider serve Tahoe is about to be built. Tahoe residents are kinda screwed but their plight has been 16 years in the making.
Tahoe residents complain that prices have gone up, but it's not because of ai, it's because of fire insurance! Liberty also isn't trying to increase profit to fund ai stuff. they asked for an 11% return on equity (max allowed shareholder profit) and the California Public Utilities Commission (CPUC) instead brought them from 10% to 9.75%. larger energy provider PG&E is also down, from 10.28% at 9.98%, but PG&E is way bigger and benefits from the CA Wildfire Fund! which is to say Liberty is allowed less profit than before they had to raise the prices, and less profit than larger energy providers despite carrying way more risk.
if the new providers cost more, then Tahoe residents will probably be sad about even more price increases, but they're not going to lose power because of NV Energy. NV Energy already gave 16 months of notice for Liberty to find a supplier on the new transmission lines. if Tahoe residents lose power, blame sits squarely with Liberty Utilities and CA/CPUC.