Congress must prioritize energy affordability and reliability to keep up with demand and ensure working families don’t pay the price.
By Former Sen. Mary Landrieu (D-LA)
Three months ago, Americans went to the polls and sent elected leaders a clear message about their economic anxiety over the rising cost of living.
A recent report from Johns Hopkins University on the election found that the Harris-Walz ticket lost significant support among Democrats and Independent voters because of inflation. Unfortunately, energy costs played a role and remain a significant inflationary factor – and were the primary reason the Consumer Price Index (CPI) rose again in December.
According to the Bureau of Labor Statistics, a 2.6% increase in energy prices for the month accounted for over 40% of price increases across the country – and this is just the beginning.
Soaring Demand from AI Is Already Straining Energy Capacity
According to a Goldman Sachs report, AI data centers are about to drive the fastest growth of electricity needs since the turn of the century and the rise of the internet. That means already-constrained energy infrastructure will be stretched even further, risking price hikes for consumers and businesses alike.
“Our leaders must recognize that natural gas is the only practical low-carbon source of energy that can sustain our base load needs.”
While wind and solar technology have made great strides over the past decade, they cannot meet the growing demand for consistent baseload energy. In fact, Goldman Sachs expects natural gas will support 60% of AI and data center load growth through 2030.
As my colleague, former Congressman Tim Ryan (D-OH), warned before the election, our leaders must recognize that natural gas is the only practical low-carbon source of energy that can sustain our base load needs.
Lacking Infrastructure Means Higher Costs and More Coal
Furthermore, we are discovering a direct connection between undersized natural gas infrastructure and higher energy prices, particularly in minority communities.
According to a new study from the Progressive Policy Institute (PPI), one unintended consequence of the energy transition is that minority communities bear the cost burden. In certain parts of the country, local politics have derailed attempts to increase fuel supplies and grid infrastructure, leading to some of the highest energy costs for the communities that can least afford it.
According to data from the Rhodium Group, when the price of natural gas rises, so does the use of more highly emitting coal for power generation.
The combination of insufficient infrastructure and increasing energy demands from AI could result in skyrocketing energy prices and a renewed dependence on coal-fired power plants. This situation would be the worst-case scenario for families and the environment.
Permitting Reform Can Unlock a Lower-Carbon Future
However, the good news is that a workable solution to both is within reach. A recent report from the Rhodium Group shows that we can have clean and affordable energy. The report notes that in 2024, U.S. coal production continued to decline, replaced by natural gas, wind, and solar energy. This trajectory follows nearly two decades of declining reliance on coal use and carbon emissions, which was only possible because of coal-to-gas switching.
While reasonable permitting regulations are essential to minimize environmental destruction and protect communities, the nexus of emissions goals and rising energy demand means the U.S. must streamline its laws to build infrastructure more quickly.
It is not unusual for the permitting process to last longer than it takes to build the proposed infrastructure. According to a 2020 White House report, the average time to move through the federal permitting process is 4.5 years. This lag has led to significant delays and even withdrawn projects.
As we kick off the 119th Congress and the new administration, our elected officials must deliver on the permitting reforms they have promised for years. Failure to enact meaningful permitting reform will mean rising prices for consumers and businesses, jeopardizing working families’ pocketbooks and the economy overall. Look no further than the 2024 election to see how voters respond when their concerns about high prices go unaddressed.