New megawatts will have to supply AI not current excesses, says Energy Capital's Doug Kimmelman

Market Dynamics & Growth Drivers - Power has become a hot commodity due to its critical role in AI and overall economic function [2] - Increased demand for electricity is driven by AI, LNG exports, cryptocurrency mining, and onshoring of manufacturing [13] - Open AI's potential deals represent massive electricity needs, equivalent to millions of homes [9][10] Electricity Prices & Costs - In New Jersey, power generation accounts for roughly 30% of electricity bills, with transmission and distribution comprising 50% [5] - Transmission costs have increased significantly, with a 300% increase over the last 15 years due to infrastructure upgrades [6][7] - Power generation prices have decreased by 40-50% over the last 15 years, but overall electricity costs are expected to rise faster than inflation [4][8] Power Generation & Capacity - The US has approximately 1200 gigawatts (12 million megawatts) of power generation capacity [11] - Data centers currently consume about 2% (25 gigawatts) of US power generation, with potential to increase to 10% (additional 100 gigawatts) [11] - Nuclear and coal power generation has decreased from 70% to 40% and could potentially lose 150 gigawatts [12] Infrastructure & Reliability - Renewables are often located in remote areas, requiring thousands of miles of expensive transmission lines [8] - Aging power lines (60-75 years old) are prone to failure and pose a reliability risk [7] - Public Service Electric & Gas has invested and plans to invest billions in transmission and distribution upgrades (20-30 billion already, another 30 billion planned) [6]