TVA signs Trump’s ratepayer protection pledge for data center costs 17%
By Daniel Dassow22%
7/24/2026, 12:00:00 AM
BS Summary: This article contains 21 faulty reasoning types, including Availability Heuristic, Self-Serving Bias, and Framing Effect, with Recency Bias as the most egregious example at 8.9% saturation with 96 hits. Analysis detected 808 faulty-reasoning hits from 1,078 analyzed words, generating a BS Score of 32.8% and a BS Rank of 17% (17,599 of 21,188 articles). This article is better (less manipulative) than 83.10% of the article peer group.
The Tennessee Valley Authority, a federal agency and the nation's largest public power provider, announced Thursday it had signed onto a ratepayer protection pledge related to data centers put forth by the second administration of President Donald Trump.
The utility generates and transmits power for more than 10 million people and businesses across seven states, including data centers operated by tech giants like Google and Elon Musk's xAI.
The facilities can use the same amount of electricity as a small to midsize city to fuel computers that process artificial intelligence tools and other applications.
The pledge announced in March includes commitments similar to rate changes TVA proposed earlier this year that would increase power bills for data center operators and add upfront charges for major power users to cover costs.
"TVA is aligned with the Trump Administration's Ratepayer Protection Pledge and is glad to sign on," Interim TVA CEO Mike Skaggs said in a press release.
"We remain committed to supplying affordable, reliable power and ensuring data center costs are not passed on to the 10 million people we serve."
(READ MORE: Google invests $1.5B to expand Alabama data center powered by TVA)
TVA announced on July 23, 2026, that it had signed the Trump administration's ratepayer protection pledge.
President Donald Trump speaks at the Environmental Protection Agency (EPA) Thursday, July 23, 2026, in Washington.
(AP Photo/Alex Brandon)
TVA announced on July 23, 2026, that it had signed the Trump administration's ratepayer protection pledge.
Interim CEO Mike Skaggs speaks during a TVA board meeting in Guntersville, Ala. on Thursday, May 21, 2026.
TVA announced on July 23, 2026, that it had signed the Trump administration's ratepayer protection pledge.
President Donald Trump shakes hand with Energy Secretary Chris Wright as he looks to Louisiana Gov.
Jeff Landry at the Environmental Protection Agency (EPA) Thursday, July 23, 2026, in Washington.
(AP Photo/Alex Brandon)
TVA announced on July 23, 2026, that it had signed the Trump administration's ratepayer protection pledge.
A photo shows the TVA office in Chattanooga on June 4, 2026.
TVA announced on July 23, 2026, that it had signed the Trump administration's ratepayer protection pledge.
A car drives past the TVA office in Chattanooga, Tennessee on June 4, 2026.
TVA announced on July 23, 2026, that it had signed the Trump administration's ratepayer protection pledge.
Interim CEO Mike Skaggs speaks with Cline Jones, executive director of the Tennessee River Valley Association, during a TVA board meeting in Guntersville, Ala. on Thursday, May 21, 2026.
TVA announced on July 23, 2026, that it had signed the Trump administration's ratepayer protection pledge.
Interim CEO Mike Skaggs listens to public comments during a TVA board meeting in Guntersville, Ala. on Thursday, May 21, 2026.
(READ MORE: Google invests $1.5B to expand Alabama data center powered by TVA)
TVA officials expect the electricity use by data centers in the utility's region will double by 2030.
Data processing and storage accounted for 18% of TVA's industrial power use last year.
The surge in power demand from data centers boosted TVA revenue to a historic $13.7 billion last year.
The utility is considering creating a separate higher power rate for the facilities to ensure the cost of infrastructure needed to bring them online doesn't fall on other ratepayers.
"This pledge aligns with TVA's approach to maintaining affordability, strengthening grid reliability, and supporting responsible economic growth in our seven-state region," Skaggs said.
TVA is one of 160 electric utilities and cooperatives that have signed onto the pledge, according to the White House.
Trump delivered remarks on the expansion of the pledge on Thursday afternoon at the Environmental Protection Agency headquarters in Washington.
"It's only fair that the cost of building the new infrastructure required to meet this demand should be borne by the corporations themselves, not by the American consumers," Trump said at the event.
Skaggs and Will Trumm, TVA chief administrative and federal affairs officer, were in attendance at the invitation of the White House, TVA spokesperson Melissa Greene said in a text.
The White House announced the pledge in March to ask tech companies to cover costs for electric infrastructure and the power supply needed for data centers, including those that power artificial intelligence tools.
Seven major tech companies – Amazon, Google, Meta, Microsoft, OpenAI, Oracle and xAI – signed the pledge in March.
Since then, more than 220 utilities, data center developers and state governments have signed the pledge, Trump said.
The signatories cover 80% of power delivered to American homes, according to the White House.
Trump said rates for 80% of power distributed in the U.S. had been "kept in check" by the pledge.
A bill introduced in the U.S.
House of Representatives in June called the Ratepayer Protection Act would require utilities to charge customers using 100 megawatts or more at a single site a rate that will cover related infrastructure upgrades.
The legislation has gained support as more Americans point to data centers as a culprit for rising energy costs.
PUSHING BACK
Local officials across the U.S. have moved to temporarily ban or strictly regulate data center development in response to pressure from residents who oppose the projects.
The Hamilton County Commission placed a moratorium on data center development for a year earlier this month following similar decisions in the city of Calhoun and Walker County in Georgia.
Seven in 10 Americans oppose data center construction for AI in their communities, and 48% are strongly opposed to the projects, according to a Gallup survey published in May.
(SIGN UP: Get Business news from the Times Free Press in your inbox five days a week by going to timesfreepress.com/business)
Trump criticized communities that have pushed out data center projects, saying they were forgoing tax revenue and jobs that would go to other communities.
He argued that approving data center development was critical for U.S. competitiveness against China on AI.
"You have to convince your communities how great these things are.
You can't fight it.
You have to go with it," Trump said.
"If you don't have it, everybody else wants it."
The ratepayer protection pledge includes a commitment for companies to negotiate separate rate structures with utilities and state governments to pay for power and infrastructure even if they don't use the electricity.
It also includes a pledge for companies to invest in hiring locally in the communities where they build.
Contact business reporter Daniel Dassow at ddassow@timesfreepress.com or 423-757-6318.
Analysis
Hover over highlighted words in the article to view the associated bias or fallacy analysis.