Core Viewpoint - The Trump administration, along with several Northeastern governors, is set to announce a plan to cap residential electricity prices by compelling technology companies to fund new power plants through an emergency wholesale electricity auction, addressing the rising electricity costs driven by data centers and AI companies [3][4][5]. Group 1: Electricity Price Capping Plan - The plan aims to cap residential power prices while ensuring that technology companies, particularly those operating data centers, contribute to the funding of new electricity generation capacity [3][4][5]. - An auction is proposed where tech companies would bid on 15-year contracts for new electricity generation, potentially supporting the construction of approximately $15 billion worth of new power plants [6][12]. - The initiative is a response to the significant increase in electricity prices, with the average retail price rising by 7.4% in September 2025, reaching a record of 18.07 cents per kilowatt-hour [11]. Group 2: Impact on Data Centers and Technology Companies - Data centers and AI giants are currently benefiting from indirect consumer subsidies, leading to a 100% increase in electricity bills for residential consumers [4][10]. - The auction would require tech giants to pay for power over the duration of the contracts, providing stable revenues in a volatile market, which could help mitigate the financial burden on smaller companies that cannot pass on costs to customers [6][19]. - The plan is expected to fast-track the development of natural gas and potentially nuclear power generation, ensuring reliable power supply for data centers critical for AI deployment [18][21]. Group 3: Political and Regulatory Context - The initiative is being introduced amid growing political pressure, as rising electricity costs are impacting the Republican party's chances in upcoming elections [10][12]. - The involvement of bipartisan governors is seen as a strategy to stabilize the power supply and address the affordability crisis in the electricity market [21][22]. - The auction is characterized as a one-time emergency intervention, with the goal of returning to market fundamentals after addressing the immediate crisis [12][13].